Bolivia is expected to sign an agreement with Indian company Indoscape to build an international tourism corridor, the head of the country’s tourism department said Wednesday.
The deal, which is expected in early 2017, would see the two countries sign a 10-year agreement to build a network of hotels, motels and tourist attractions between Bolivia and India.
The deal is expected for an initial capital of $3 billion and will cover the next decade, according to the head, Ricardo de Carvalho.
India is Bolivia’s largest foreign investor and has invested $4 billion in Bolivia’s economy in recent years.
The plan for the highway, a highway that will connect Bolivia and the Indian Ocean island of Maldives, has also been in the works for some time, but the new agreement marks a major step forward.
“The agreement will provide Bolivia with a road network that will provide access to many parts of the island, especially the major port cities, which are key for the economic development of the Bolivian economy,” De Carvalhos office said in a statement.
The highway is expected cost around $500 million and will run through some of Bolivia’s most remote areas, which were once inaccessible due to the harsh climate and a lack of infrastructure.
The agreement was reached after the government signed an agreement in May 2017 with India, which was seeking to expand tourism.
The project will be financed through an existing bond of $150 million and the infrastructure will be paid for through a tax on foreign tourists, which the Bolicans are expected to collect on their return to Bolivia.