HIGHWAY REHABILITATI

closed

The Highway Rehabilitation and Maintenance Project for Panama will assist in financing a program for the improvement of the highway system in Panama. Immediate action is required to prevent a breakdown of a large part of the Panamanian highway system. Except for activities connected with the Canal and Canal Zone, the economy of the country is almost entirely dependent on agriculture. Produce can only move from farms to markets by highway transport; with distances from 300 to 500 kilometers separating the major production areas from market centers. The deterioration of roads has slowed down agricultural production and its potential for growth. The project will help to alleviate this problem by: 1) completing a reorganization and personnel training project and developing a trained, efficient Highway Department that is capable of supporting a permanent maintenance and road construction program; and 2) reconstructing approximately 645 kilometers of primary roads and 380 kilometers of secondary roads of the existing surfaced highway system. These improvements will help to promote agricultural development by establishing a good highway organization and system of roads.