The Central American Bank for Economic Integration (CABEI) has made its first payment to start building a major new highway that will ease traffic jams in southern Tegucigalpa, according to the bank’s announcement. The “Peripheral Bypass Road–CA-5 South Highway Project” will help more than 20,000 drivers daily by cutting travel times and reducing vehicle operating costs. Construction is set to begin in the third quarter of 2025.
The project involves building 8.16 kilometers of four-lane boulevard with concrete pavement, connecting the Peripheral Bypass Road to the CA-5 South highway at El Tizatillo. But CABEI decided to extend the original design by at least 3 additional kilometers to get more bang for the buck and better address mobility needs in this part of the capital.
The bank recently awarded the construction contract, which includes paying compensation to landowners whose property will be affected. The first disbursement will cover these initial payments, following what officials described as constructive talks with property owners during the design phase. Getting landowner support was key to moving the project forward.
Construction should take 24 months once work gets underway. The highway is part of CABEI’s broader push to build better roads and connections across Central America through 2029.
Thousands of people stuck in traffic jams every day in southern Tegucigalpa will see their daily drives get faster and cheaper once this road is finished. The project demonstrates how building better infrastructure helps regular people while also boosting the country’s economy.
