HIGHWAYS VIII (SECTO

closed

The Eighth Highway Project is a highway sector operation, supporting the Government's 1982-1986 Highway Development Program, which fosters economic growth and regional decentralization of productive activity, the adoption of minimum cost transport solutions over the medium-term, complemented by a cohesive transport policy and regulatory framework as well as adequate financing. The project will also assist in strengthening the local contracting industry, particularly in its efforts to recover from the prolonged slump in construction activity during the 1970s. The Bank loan will finance about 7 percent of the cost of the program, which in turn, will correspond to 15.6 percent of the estimated foreign exchange cost. The items that will be financed include: (a) rehabilitation, paving and new construction contracts; (b) maintenance equipment; (c) studies; and (d) technical assistance.