PR2166
NR-292/96 Daniel Drosdoff (202) 623-2407
E-Mail: Danieldr@iadb.org
Web address: http://www.iadb.org
FOR IMMEDIATE RELEASE December 4, 1996
The Inter-American Development Bank today announced the approval of a $365
million loan to Mexico to help finance a massive program to improve sanitation,
drainage, and water supply efficiency in the greater Mexico City metropolitan
area and adjacent agricultural valleys.
The total cost of the program is $1.035 billion, with $410 million in
cofinancing expected from the Overseas Economic Cooperation Fund of Japan. Local
counterpart funds total $260 million.
Among the goals of the program are to prevent potentially catastrophic
floods, improve health conditions, and curb environmental degradation in the
Mexico and Mezquital valleys.
In addition, technical assistance and financing will be provided to help
establish support and cooperation agreements among the federal government, the
Federal District, the state of Mexico and 18 regional municipalities of the
Mexico Valley metropolitan area to achieve improved operating efficiency among
water supply operators.
The program, to be coordinated by the Comisi¢n Nacional del Agua, is
expected to reduce the incidence of waterborne diseases affecting an estimated
400,000 inhabitants of the Mezquital Valley and improve sanitation for irrigated
farm products.
The IDB loan is for a 25-year term, with a seven-year grace period, at the
variable interest rate, now 6.87 percent.
*Comisi¢n Nacional del Agua
Insurgentes Sur 1443, Mexico D.F., Mexico.
Tel. (525) 237-4295; fax (525) 598-4276
Contact: Antonio Capella, Director del Proyecto,
Saneamiento Valle de Mxico