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IDB announces $100 million loan to Chile for rural sanitation program

The Inter-American Development Bank approved today a $100 million loan to Chile for a rural sanitation program to improve the quality of life of people living in dispersed communities. The program will contribute to the Chilean government’s goal of expanding coverage to all rural inhabitants, providing them with a level of service equivalent to that of their urban neighbors.

“The majority of the population of Chile already enjoys excellent water and sewerage services,” said IDB team leader Christopher Jennings. “This program will reduce the coverage deficit in those rural areas that are the exception.”

“Cost-efficient and sustainable solutions will be provided by the construction of rural potable water and sewerage projects; and the repair, rehabilitation and replacement of existing wastewater treatment plants. The program will also include activities to ensure community participation in the development of individual projects, support implementation, and provide them with the technical skills necessary for operation and maintenance,” added Jennings.

The IDB financing for the program will be a performance driven loan to build 9,000 new potable water and 45,300 new sewerage connections for rural households. Also 60 existing wastewater treatment plants will be repaired, rehabilitated or replaced.

This project was developed in line with the IDB 2006-2010 strategy with Chile to foster growth while improving equality of opportunity and social inclusion.

The loan will be for a 10-year term and a 5-year grace period, at an adjustable interest rate. Local counterpart funds will match the IDB loan.

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