The bank said the US$10 million (J$895 million) loan marks one of the first targeted at 'road safety', as a primary objective by a multilateral agency - a policy initiative it is attempting to roll out across the wider Caribbean and Latin American region.

The funds will be disbursed over five years, with Jamaica getting 25 years to repay the loan, including five years of grace.

The bank did not specify the price of the funds, saying only it would be Libor based.

Jamaica's roads are in need of urgent upgrades due to inadequate maintenance and the effects of several natural disasters in recent years," said the IDB Tuesday in a statement announcing the loan.

"Between the years 2001 to 2008, the Jamaican government reported about 98,000 crashes and almost 3,000 fatalities."

Costly accidents

Four years ago, accidents were a US$100 million drain on the national purse, the bank added.

The announcement of the road-safety loan comes just ahead of the expected announcement in Parliament Tuesday that Jamaica and the International Monetary Fund had reached an accommodation on the US$1.2 billion borrowing facility for the country.

Jamaica's situation is becoming more precarious, with expenses currently running $79 billion ahead of its revenue from taxes and grants - exacerbated by underperforming tax revenues, which were $15 billion below expected levels up to October.

The IMF's balance of payments support is expected to trigger access to multilateral credit from agencies like IDB, providing cheaper sources of financing for government operations and programmes.

The IDB said its US$10 million loan will help reduce traffic fatalities and injuries by financing civil works to improve road-safety conditions and provide adequate signage and pedestrian crossings.

It will also finance a road safety assessment plan for drivers and pedestrians and the production of road design manuals that establish road safety standards.

The bank also expects a redesign of the process of issuing of road repair jobs, saying the funds would 'support innovative ways' of contracting road maintenance and financing surface repairs, removal of debris, maintenance of damaged structures, and repair and replacement of traffic signs and guardrails.

business@gleanerjm.com