IDB Approves $128.48 Million Financing Package to Improve Water Security in Ecuador

WASHINGTON – The Board of Executive Directors of the Inter-American Development Bank (IDB) approved a $128.48 million financing package to improve water security in Ecuador and strengthen the capacity of Banco de Desarrollo del Ecuador B.P. (BDE B.P.) to mobilize capital.

The package consists of a $120 million multiple works investment loan, as well as a $4.76 million loan and a $3.72 million grant from the Green Climate Fund to strengthen water resilience in the Ecuadorian Amazon.

The program is aligned with Amazonia Forever, the IDB Group initiative that promotes sustainable development and the protection of Amazon ecosystems.

Approximately 283,000 people, including 166,000 in the Amazon region, will directly benefit from improved infrastructure to expand access to and enhance the quality of drinking water, sanitation, and solid waste management services. The program will also reduce vulnerability to floods and droughts through improvements in stormwater drainage, as part of strategic planning efforts for the conservation and protection of water resources.

The $120 million multiple works investment loan has a 23.5-year repayment term, a 7-year grace period, and an interest rate based on SOFR. The $4.76 million Green Climate Fund loan has a 20-year repayment term, a 5-year grace period, and an interest rate of 0.75%.

In addition to this financing package, the program includes $12 million in local counterpart funding.