The European Investment Bank (EIB) has offered $136m to build a new bus rapid transit (BRT) line in Managua, the capital city of Nicaragua in Central America. 

The new 10km-long BRT will run alongside Avenida de Juan Pablo II, one of the capital’s main arteries, and will be used by the high-capacity buses. It is expected to improve transport services between east and west Managua. 

EIB vice-president RománEscolano said: "The importance of this agreement for the development of new infrastructure bringing major social, economic and environmental benefits.

"One of the objectives of the EIB, the EU bank, in offering favourable financing terms is to foster sustainable economic growth in Latin America. 

"Today's loan represents a good example of our support for projects providing people with more rapid, safe and sustainable means of transport."  

The new BRT will establish new connections between the suburbs and the centre to ease traffic congestion in one of the city's most congested parts.

The project will see the widening of Avenida Juan Pablo II road from two to three lanes in both directions, and the new segregated third lane will be reserved for buses. 

BRT will have 17 stops and is expected to serve nearly 80,000 users a day.

"The importance of this agreement for the development of new infrastructure bringing major social, economic and environmental benefits."

The EIB-financed project will also include construction of a new bicycle lane that will be built alongside the new BRT corridor, and construction of new overpasses and traffic light crossings to improve the safety of pedestrians in the region.

In addition, the BRT corridor project works will include upgrading the existing drainage and the sewerage system, as well as electricity and communications networks.

The loan has been provided by the EIB to improve the safety and sustainability of Managua’s transport system and help the city combat the effects of climate change.

The EIB loan provided to the Republic of Nicaragua Government will be covered by the EU guarantee agreement and is granted under the EU-Latin America lending mandate for 2014-20.  

Image: EIB to finance bus rapid transit (BRT) line in Managua. Photo: courtesy of European Investment Bank.