Bolivia to improve drinking water, sewage systems for 145,000 people with lDB loan

Dec 11, 2013

Bolivia will improve and broaden access to drinking water and sewage systems through a $60 million loan from the Inter-American Development Bank (IDB).

The program will benefit some 145,000 people by providing them with new or improved drinking water or sanitation services. It will also allow for broadening and improving these vital services in Cobija, Riberalta and other cities and towns in Bolivia.

As part of a multi-phase program, this is the second loan in a series of two operations. Keeping in mind the lessons learned in Phase 1, Bolivian authorities are working with the IDB on the technical and financial aspects of the design so as to enhance the execution and supervision of the program, ensuring the operation and long-term maintenance of the infrastructure.

Water and sanitation are two strategic priorities for Bolivia, which has developed a National Plan for Basic Sanitation to establish priorities for confronting challenges in this area. The program will allow the Environment and Water Ministry to provide support to the cities and towns that benefit from it and their corresponding service providers with technical, operational and financial planning. This will be achieved via municipal master plans for drinking water and sanitation.

The IDB loan is composed of $48 million in ordinary capital over 30 years with a six-year grace period and a fixed interest rate; $12 million from the Fund for Special Operations, over 40 years and with the same grace period and an interest rate of 0.25 per cent. For its part, Bolivia will contribute with $24 million to the program.

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