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Brazil to improve environmental sanitation with IDB loan

US$135 million loan will benefit more than 31,000 people living in the Mane Dende River basin in the Salvador da Bahia suburbs

Salvador da Bahia, Brazil’s fourth largest urban area, will invest in environmental sanitation of the Mane Dende River basin with help from the Inter-American Development Bank (IDB).

The area is home to more than 31,000 people, most of them living in highly vulnerable, informal settlements.

The project’s total cost is $135 million, of which $67.5 million will be loaned by the IDB to the Salvador Municipality and the remaining 50 percent will be covered by the city government using its own funds.

The project will help improve sanitary and environmental conditions, reduce flood vulnerability risks, and enhance urban conditions in the Mane Dende river basin. It will include macro and micro drainage works, slopes stabilization, water and sanitary sewer systems, urbanization, roads and urban equipment, and help to resettle families to less vulnerable locations.

Additionally, the project will finance efforts to boost the population’s sanitary education and habits and to improve the performance of the institutions responsible for the sustainable operation of the infrastructure.

The Mane Dende is a tributary of the Rio do Cobre, the main waterway in the Salvador da Bahia metropolitan area. Its waters feed the São Bartolomeu Park waterfalls, the city’s main green space. For this reason, the sanitation works aimed at restoring the water quality will bring about far more important benefits to the population at large.

The loan will be disbursed over a five-year period and have a 25-year amortization term, with a 5.5-year grace period and a LIBOR-based interest rate.

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.