The Inter-American Development Bank today announced the approval of a US$21 million loan for a small community water program n Bolivia. The loan will be financed by US$14.7 million from the Bank’s Ordinary Capital and US$6.3 million from the Fund for Special Operations.
The purpose of this program is to increase the coverage of sustainable potable water service and wastewater disposal in rural areas. This project will benefit 200,000 new customers living in approximately 500 rural communities.
This effort will contribute to the broader goal within the IDB Water Initiative of providing 3,000 new rural communities throughout Latin America and the Caribbean with potable water and sanitation by the year 2011.
The IDB and the Government of Bolivia have worked closely with the German Development Bank KfW, which is developing a parallel project that will benefit an additional 200,000 new customers.
“More than one million rural residents in Bolivia still lack improved drinking water and basic sanitation,” said IDB project team leader, Christopher Jennings. “The proposed IDB program, in conjunction with the KfW operation, will reduce this figure by about 40 percent, making a significant contribution to Bolivia’s effort to meet the Millennium Development Goals.”
An important component of this program is the involvement of the communities, whose input will be essential in the development, construction and operation phases.
“A significant percentage of the budget will be allocated to community support activities, which will begin from the time a project is inscribed in the program and confirmed for financing” said Jennings. “These activities will continue in parallel with project development until the project has been operating for 12 months.”
From the IDB loan, US$4 million will be allocated to community support activities which will be executed with qualified NGOs or consulting firms.
The IDB loan will be executed by Bolivia’s Productive and Social Investment Fund.