IDB approves US$100 million to The Bahamas for New Providence transport program

Supplementary financing to improve the road network of the nation’s most populous island The Inter-American Development Bank today ( 22/05) announced the approval of a US$100 million loan to the Bahamas to support a program to improve transport in the island of New Providence. New Providence is home to 69% of the population of The Bahamas and its capital city, Nassau. The island has 1,600 kilometers of roads, the majority of them paved and in adequate condition, but the network’s capacity is insufficient for its growing volume of traffic.

The 25-year IDB loan will assist the Ministry of Public Works and Transport in completing the New Providence Transport Program, which has an estimated total cost of US$162 million.

The program has faced escalating costs in recent years due to the high demand for construction services, equipment, materials and labor in The Bahamas, conditions that were exacerbated by disruptions such as the hurricanes of 2005.

The New Providence Transport Program foresees the construction of 15 kilometers of new roads and the improvement of 23 kilometers of existing roads, mostly by widening. Part of the work was completed using resources from an earlier loan.

The new loan also supports the institutional strengthening of the Ministry of Public Works and Transport. It will finance key studies on traffic management for downtown Nassau and routine road maintenance in New Providence, among other priority issues for the program.

The new loan will have a four-year grace period and an adjustable interest rate.