The Inter-American Development Bank (IDB) approved a $350 million operation to expand and modernize the Teculután-Mayuelas sub-section of the CA-9 North highway corridor in Guatemala. This project seeks to improve international connectivity, promote safe and resilient regional integration, and facilitate the country’s foreign trade.

86,600 residents of the municipalities of Teculután, Río Hondo, and Gualán (Zacapa) will benefit. 2,057 businesses and 19,000 daily users of the intervened section will also benefit, and 4,475 families will receive support through forest conservation programs in the watersheds crossed by the highway.

The CA-9 North corridor is Guatemala’s main regional integration and foreign trade route. It connects:

• The ports of Santo Tomás de Castilla and Puerto Barrios (Atlántico).
• With the ports of San José and Quetzal (Pacific), via CA-9 South.
• In addition, it connects with Guatemala City, the country’s most important logistics and industrial hub.

Currently, the Teculután-Mayuelas section suffers from poor infrastructure, high vulnerability to extreme events such as flooding, low service levels and long travel times, high vehicle operating costs, and unsafe and inaccessible urban environments.

The project includes expanding the road to four lanes for 47.5 km, with infrastructure and designs adapted to increase road resilience and safety. This includes bypasses, intersections, pavements, bridges, and arches. Measures will also be implemented to improve road safety, universal accessibility, and active pedestrian and bicycle mobility.

The program will implement Nature-Based Solutions (NBS) in high-risk flood areas, as well as training local producers in forest conservation and restoration and the development of agroforestry and silvopastoral systems. These measures seek to strengthen the sustainability of the project and the road infrastructure. Loan Financing and Conditions

• Amount: US$350 million.
• Repayment term: 23 years.
• Grace period: 7.5 years.
• Interest rate: Based on SOFR.

In addition, pre-investment studies will be financed to design future improvements on other sections of the CA-9 North, as far as Puerto Barrios.

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