The city of Cuenca will receive a multi-million dollar loan from Importadora Tomebamba to continue tram construction on Av. España. The company, located on Av. España, is one of the businesses that has complained about the lack of progress on the project.
In exchange for the loan, Importadora Tomebamba, southern Ecuador’s largest importing firm, will deduct future taxes and licensing fees that it owes the city. The loan will be guaranteed by the national government.
Tram project director Gerard Fernandez, said that the loan means that tram construction on Av. España will be completed on schedule. “The work in the area has been delayed by the slow delivery of funding from the government,” he said. “Traffic problems caused by construction has negatively affected Importadora Tomebamba, as well as other businesses on the street, and they have agreed to provide the loan so the work can be completed sooner.”
The exact amount of the loan was not disclosed although it is thought to be about $5 million.
According to Fernandez, the national government owes the city more than $20 million promised for tram construction. He said he expects to receive most of that within two weeks.