The Inter-American Development Bank (IDB) approved its largest single no-sovereign guaranteed transaction in the Dominican Republic with a $130 million senior secured loan for Dominicana de Vías Concesionadas, C. por A. to finance the rehabilitation, construction, operation and maintenance of a network of connecting toll roads, known as Viadom.

The IDB loan will help finance the rehabilitation of 199 kilometers of roads as well as the construction of 68 new kilometers of roads. Viadom links Santo Domingo to Santiago and the touristic area of Puerto Plata. It also includes the construction of a ring road around the city of Santiago and a road access linking Santo Domingo to the southern cities of San Cristobal and Bani.

“The project will help improve the connectivity of the country as Viadom represents the main north-south axis of the Dominican Republic, reducing travel time and facilitating commercial activities,’’ said Victor Salgado, the project team leader at the IDB’s Structured and Corporate Finance Department. “The new ring road will substantially alleviate traffic congestion and, as a result, reduce air pollution in the center of Santiago.”

The two-hour travel time from Santo Domingo to Santiago will be reduced by 24 minutes and better roads are also expected to cut 45 minutes of the three-hour travel time between Santo Domingo and the touristic enclave of Puerto Plata.