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World Bank Support for Sub-National Transport System to Benefit More than 5 Million Peruvians

December 11, 2015

Project to Facilitate Social Inclusion in Poor and Vulnerable Rural Communities

LIMA, December 11th, 2015 – The World Bank Board of Executive Directors approved US$50 million in financing today to maintain 5,000 kilometers of rural roads and to rehabilitate 2,200 additional kilometers, with the intention of improving the country’s competitiveness and increasing access to markets and public services among poor and remote rural populations.

The Peruvian road network totals 150,000 km, 95,000 km of which are rural roads. Close to 45 percent of rural roads are in bad or very bad shape, isolating people living in these areas. The Sub-National Transportation Support Program (PATS, in Spanish) will target the poorest, most vulnerable districts in 23 departments, directly or indirectly benefitting five million people most of them belonging to the lowest 40 percent of the income distribution.

“This program will reduce the quality gaps found in Peruvian infrastructure, facilitating access to markets and public services in the most isolated and vulnerable rural communities in the country,” said Alberto Rodriguez, World Bank Director for Bolivia, Chile, Ecuador, Peru and Venezuela.

The main objectives of this project are: improve the access of rural populations to health, education and market services; direct and indirect job creation and other income-generating opportunities; increase the agricultural sector’s productivity and income-generation via a reduction in travel times; and increase productive investments and job opportunities for residents of beneficiary communities, thus increasing household consumption rates and reducing poverty rates.

The US$50 million loan has a six-year implementation period with a 13-year maturity and a 12-year grace period. The World Bank is financing this project along with the Government of Peru and the Inter-American Development Bank.


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Press Release 2016/219/LAC

Media Contacts
In Washington, DC.
Marcela Sanchez-Bender
Tel : +1 (202) 473-5863
In Lima, Perú.
Sandra Arzubiaga
Tel : +51 1 622-2339