May 2, 2014
Brazil to expand drinking water and sewage system with help from IDB
Project will benefit 274,000 residents of the Federal District
Residents of Brazil’s Federal District, in particular those living in the districts of Sobradinho I and II, Jardim Botânico, Lago Sul, Incra 8 and Brazilândia, will benefit from an easing of the overburdened water supply grids of Compañía de Saneamiento Ambiental do Distrito Federal (CAESB) and better utilization of these systems through a $170.8 million loan from the Inter-American Development Bank (IDB).
CAESB’s Environmental Cleanup Program will help reduce the risk of water rationing and provide the company with the tools needed for future expansion.
The project is expected to help connect 13,498 homes to the drinking water supply, overhaul four water treatment plants, interconnect three supply grids and upgrade seven urban reservoirs. In addition, 17,118 homes will be connected to the sewage grid, 45.8 kilometers of which will be upgraded.
The plan was designed so that CAESB can meet water demand from the growing population of Brasilia and nearby districts and towns through measures that guarantee the water supply, particularly in periods of drought. It also will expand the sewage system and the grid for shipping and treating waste water, while strengthening the operational management of the company.
As for initiatives to fight global warming, renewable energy and environmental sustainability, the program calls for the purchase and installation of 418.000 hydrometers, the forestation of 150 hectares of a conservation unit so as to offset the emission of 49,000 tons/year of CO2 from the waste water treatment plants; implementation of the system of environmental management developed by CAESB and ISO certification processes in specific units of the company.
The IDB loan is over 25 years with a grace period of 5.5 years and an interest rate based on LIBOR. Brazil is providing $115.5 million in matching funds.