At project outset, only 13 percent of Nicaragua’s 17,146-kilometer road network was in good condition. In addition, after Hurricane Mitch struck in 1998, rural communities found themselves cut off as secondary roads were destroyed; trade and economic activity came to a standstill.
- The project was designed to improve transportation in Nicaragua by rehabilitating key roads, strengthening road maintenance, and developing the planning capacity of the Ministry of Transport and Infrastructure. In response to Hurricane Mitch, the project was quickly amended to focus on emergency reconstruction program.
- One of the key adjustments to the project design involved switching to a very simple, yet effective and lasting paving technique. The project piloted the use of adoquins–small, cement blocks–in a simple technique which is both inexpensive and labor intensive (instead of gravel or asphalt).
A rapid and successful mitigation of major economic setbacks resulting from the severing of national and regional road transportation arterials by Hurricane Mitch.
Highlights:
- Rehabilitation of the Pan American highway section between Managua and San Benito (29.3 km), which forms part of the strategic network connecting Nicaragua with other Central American countries, and is the principal road for exporting products to neighborhood countries.
- Restoration of transport connection on over 3,000 km of main and secondary roads, allowing for quick recovery of economic activity following Hurricane Mitch.
- The use of adoquin for paving had a variety of impacts: its large labor component provided employment when people needed it most; cheaper building material was more efficient; all secondary roads were completely restored.
- A beneficiary survey conducted by a local consulting firm revealed a high degree of satisfaction with adoquined roads. Hard surface pavement reduced dust pollution. Goods can now reach market without getting covered in dust; bus service has become safer and more reliable; people are opening small shops along the roads.
- Eleven micro-enterprises were formed to service over 660 km of roads per year. The micro-enterprise program employed 352 people, and produced indirect benefits for about 2,460 persons.
- Total project cost was US$59 million, of which IDA provided US$48 million and the government of Nicaragua US$11 million.
- IDA was instrumental in catalyzing and harmonizing donors around post-hurricane reconstruction. IDA flexibility made it possible to quickly restructure its own project to prioritize restoration of access two months after the hurricane struck.
- IDA adapted global multi-sectoral knowledge to specific country conditions. While the adoquin method was known in Nicaragua and used to pave streets in small urban centers, no other donor had ever used it in projects. The pilot demonstrated to both government and donor partners that adoquin paving is technically and environmentally sound and cost efficient and can be targeted to helping through labor intensive civil works programs.
- Provided critical training to the Ministry of Transport and Infrastructure, ensuring fiduciary compliance and building local capacity in the areas of economic analysis, financial management and procurement. Project was managed by regular staff of the Ministry of Transport rather than by a separate project implementation unit, thereby maximizing opportunities for local capacity building.
Nicaragua continues to face substantial challenges in the transport sector: only 10 percent of its road network is paved, which is low both in comparison to the Central American average (29 percent) and to countries with similar level of development (31 percent). Only 22 percent of Nicaragua’s population has access to a paved road, and only around 20 percent of the network is in good or fair condition.
- IDA continues to support the roads sector in Nicaragua through ongoing Third and Fourth Road Rehabilitation and Maintenance Projects. The Third Roads Project already financed the rehabilitation and pavement of 152 km of highways and 240 km of rural roads (using adoquin), and ensured that these roads will be maintained in the future in a sustainable manner. The recently approved Fourth Roads Project will further support relieving transportation bottlenecks that currently hinder economic growth and private sector investment.
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