World Bank Invests $400M to Upgrade Guatemala's Rural Roads and Boost Inclusion

In a transformative move for Guatemala's infrastructure and economic development, the World Bank Group’s Board of Executive Directors has approved a new $400 million operation to rehabilitate and upgrade 640 kilometers of rural roads and highways. The project, titled the Rural Infrastructure and Mobility for Well-Being Program, is poised to benefit nearly 5.1 million people, particularly in underserved regions such as the Highlands, the Verapaces, and the Dry Corridor.

The program aims not only to improve road connectivity but to foster inclusive growth, climate resilience, and regional integration, while addressing historic inequalities faced by rural and Indigenous populations.

Expanding Opportunities Through Connectivity

In Guatemala, a country where agriculture contributes 10.2% of GDP and employs over one-third of the workforce, rural connectivity is essential to link communities with markets, services, and economic opportunities. However, infrastructure gaps have hindered progress. As of now, only 40% of the nation’s roads are paved, severely limiting access to healthcare, education, and employment in remote areas.

This investment will target critical upgrades in regions marked by high poverty, Indigenous populations, and geographic isolation, with roads designed to support better access to basic services and promote territorial integration.

Project Scope: Roads That Empower

The Rural Infrastructure and Mobility for Well-Being Program focuses on:

• Rehabilitating rural roads, departmental routes, and national highways, particularly in areas vulnerable to climate risks.

• Upgrading road designs to ensure resilience against extreme weather events like floods, landslides, and hurricanes.

• Creating a long-term road maintenance program, a critical component to ensure the sustainability of rehabilitated and newly constructed roads.

• Promoting social inclusion, with special attention to the needs of women, Indigenous communities, and persons with disabilities.

• Building institutional capacity, through training and upskilling of the Directorate General of Roads, the agency responsible for infrastructure management.

Alignment with National Development Goals

The project is closely aligned with Guatemala’s General Government Policy 2024–2028, which prioritizes investments in inclusive, sustainable, and climate-resilient infrastructure.

“Investing in road infrastructure is a strategic bet for Guatemala’s development. This project will strengthen connections between regions, facilitate access to services and opportunities, and help boost the local economy,” said Jonathan Menkos, Minister of Public Finance.

Menkos highlighted that the initiative will directly benefit areas with the greatest development gaps, reinforcing the government’s commitment to closing inequalities and uplifting marginalized communities, particularly Indigenous and rural populations.

Climate-Resilient Infrastructure for a Changing World

Guatemala’s geography makes it highly susceptible to climate change. The country routinely faces extreme weather events that damage infrastructure and disrupt livelihoods. Roads in mountainous and low-lying areas are especially vulnerable.

To address this, the World Bank-backed program includes climate-smart design standards, ensuring that roads can withstand severe weather, thus protecting both infrastructure investments and the communities that rely on them.

“This project is a decisive step toward more climate-resilient infrastructure in Guatemala,” noted Pierre Graftieaux, World Bank Country Manager for Guatemala. “It is essential to protect vulnerable communities and ensure the long-term sustainability of the road network.”

Empowering Women in Infrastructure

The initiative also breaks new ground in gender inclusion. Recognizing the gender imbalance in the transport and construction sectors, the project includes targeted programs to promote women’s participation. Certified training programs in road construction and maintenance will be rolled out to empower women with new skills, create employment opportunities, and help close the gender gap in infrastructure-related jobs.

This aligns with global efforts by UN Women and other development partners to ensure women are not just beneficiaries but active participants in building and maintaining infrastructure that supports communities.

Long-Term Vision for Inclusive Growth

By combining physical infrastructure development with institutional reform and social inclusion, the Rural Infrastructure and Mobility for Well-Being Program represents a holistic approach to development. The project’s impact will ripple beyond improved roads, enabling:

• Greater access to healthcare and education

• Increased agricultural productivity and market integration

• Job creation through infrastructure projects

• Social mobility for excluded populations

It also positions Guatemala to improve regional competitiveness, by strengthening domestic trade links and boosting its economic ties with neighboring countries.

The World Bank’s $400 million investment marks a critical step toward a more connected, inclusive, and resilient Guatemala. By prioritizing rural populations and building climate-ready roads, the project will help unlock the economic potential of millions and contribute to sustainable development for years to come.

As the country builds forward from the challenges of poverty, climate change, and inequality, this initiative provides a pathway to prosperity grounded in equity, access, and resilience.