$20 million grant from Spain and IDB loan for $20 million to increase water and sanitation in rural communities and small towns

Bolivia will improve its drinking water, sanitation and wastewater treatment services in rural communities and small towns with a $20 million grant from the Spanish Cooperation Fund for Water and Sanitation in Latin America and the Caribbean (SFW) and a loan from the Inter-American Development Bank (IDB) for $20 million.

The operation will build new water and sanitation systems as well as expand and improve existing ones. As a result, 11,200 households in rural Bolivia will be equipped with new water connections and individual sanitation solutions. Bolivia’s small towns are also set to benefit from the program, with an additional 9,800 households receiving access to water and 9,600 new sewer connections installed by project completion.

In addition to creating better access to water and sanitation services, the program is also expected to bring down incidence of waterborne diseases.

The project is accompanied by feasibility and design studies to support the proposed works. Training workshops and awareness-raising campaigns will promote adequate use of water, control of wastewater and good hygiene among local communities. Particular emphasis will be placed on women and their participation in decision-making processes.

Furthermore, water and sanitation providers will be trained in systems administration as well as operation and maintenance.

Since 2008, the Spanish Agency for International Development Cooperation (AECID) and the IDB have jointly supported projects financed by the SFW in Bolivia, Brazil, Costa Rica, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Paraguay, Peru, the Dominican Republic, and Uruguay. Over this period, Spain has contributed more than $500 million for these projects, enabling the Bank to leverage an additional $500 million.

The IDB loan will be financed with $15 million from the Bank’s Ordinary Capital with an amortization period of 30 years and a grace period of five years. An additional $5 million will come from the IDB’s Fund for Special Operations with an amortization period of 40 years and a grace period of 40 years.