Peru Decentralized Rural Transport Project

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The objective of the Decentralized Rural Transport Project is to contribute to territorial development and to the fight against rural poverty in the Borrower's territory by improving access of rural households and entrepreneurs to goods, social services and income generating opportunities through reduced transport costs and better rural transport infrastructure. The project will include the following four components: (a) improvement of rural transport infrastructure, which will scale up to the entire country the decentralized rural roads policies that have been successfully developed during the first two rural roads projects; (b) institutional development which will provide a comprehensive institutional strengthening package at the local and central levels, in the broader context of the decentralization reforms; (c) transport for territorial development which will enhance the impact that improved transport conditions can make on rural development by enhancing complementarities with other types of investments and by promoting productive activities, and which will: (1) scale up the Local Development Window (LDW) model developed during the second Rural Roads Project, and (2) experiment in 15 Peruvian provinces a Rural Infrastructure Pilot that will include specific incentives to promote greater complementarities across rural infrastructure investments; and (d) project management which will cover project administration costs, as well as monitoring, evaluation and audits.