The Inter-American Development Bank today announced the approval of a $130 million loan to improve the coverage and efficiency of sanitation in Brazil’s Federal District.
The resources will help finance rehabilitation and construction of water treatment plants and supply systems, wastewater systems, and street paving and storm drainage works. In addition, investments will be made in environmental protection and to help establish an independent Agency for Water Supply and Sanitation Services and a Water Resources Management Agency.
The program includes the preparation of a strategic plan to modernize the business sector and improve customer service by the Federal District Sanitation Company (CAESB)*, as well as the sale of 49 percent of the shares in the company to the private sector, a measure that will add new resources to Brasilia’s financial position. A master water and sewerage plan will also be prepared for CAESB.
The total cost of the program is $130 million. The IDB loan is for a 25-year term, with a five-year grace period, at the currency pool variable interest rate, now 6.36 percent. Local counterpart funds total $130 million. Previously the IDB has provided Brazil with 24 loans for a total of $2.2 billion to support sanitation and environmental protection.