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Belo Horizonte will improve urban sanitation and reduce flood risks with IDB loan

$55 million loan will improve the environmental quality of Bonsucesso watershed in the Municipality of Belo Horizonte

More than 42,000 inhabitants of the Bonsucesso watershed area in the municipality of Belo Horizonte in Brazil will enjoy better health indices and access to cleaner water and reduced risks to flooding with a $55 million loan from the Inter-American Development Bank (IDB).

This project will enable Belo Horizonte to complete the Bonsucesso watershed project by focusing on reducing flood risk, restoring the quality of waterways and by improving drainage systems and urban environmental management, among other actions.

The first stage of The Belo Horizonte environmental restoration program (DRENURBS) was approved in June, 2004.

“It is a privilege to contribute to the improvement of the quality of lifein Belo Horizonte, through infrastructure investment and planning instruments in partnership with the city”, said Yvon Mellinger, IDB project team leader.

The project’smain objectives are to implement approximately 5.7-kilometernetwork of micro and macro drainage, as well as 11.2 km of sewerage network and 8.7 km of wastewater interceptors that will connect to the Arrudas Wastewater Treatment Plant thus reducing the watershed’s organic pollution.

Belo Horizonte, capital of the state of Minas Gerais in Brazil’s Southeast region, has an area of 330 square kilometers and a population of about 2.4 million.

The IDB loan consists of $55 million for a 25-year term, with a 5.5 year grace period and an interest rate based on LIBOR. Local counterpart funds total $55 million.

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