NEW ORLEANS − Honduran Finance Minister Gabriela Núñez de Reyes and Inter-American Development Bank President Enrique V. Iglesias today signed documents for a $26 million soft loan to promote and consolidate reforms at the municipal level to provide efficient and sustainable potable water and sanitation services.

The Ministry of Finance will channel subloans from resources in a municipal trust fund to finance technical assistance and civil works in medium-sized municipalities that intend to establish operators with enough autonomy to provide services on a commercial basis under a clear regulatory framework.

The program will strengthen the capacity of the municipalities as the entities responsible for potable water and sanitation services and promote formal relationships with operators, service clients, and financial organizations.

The ceremony was held in conjunction with the Annual Meeting of the Inter-American Development bank in New Orleans, which continues until March 29.