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IDB approves $452 million for sanitation program in Brazil’s Baía de Guanabara

Resources will help Rio de Janeiro state to advance on a program to expand sewage collection to 80 percent of the state’s population by 2018

The Inter-American Development Bank (IDB) approved a $452 million loan to improve sewage collection at Baía de Guanabara, one of Brazil’s best known tourism landmarks.

The resources will allow Rio de Janeiro state’s government to advance in the implementation of the Sanitation Program for the Municipalities of Baía de Guanabara (PSAM), a region that is home to over 10 million people. The program is part of the Sanitation Pact, a plan approved in April aimed at expanding sewage collection to 80 percent of the state’s population by 2018.

“The goal is to improve sewage collection and treatment levels, lowering the organic domestic waste that reaches water channels. As a result, the program will help improve the Baia de Guanabara’s water quality,” explains Yvon Mellinger, the IDB project team leader.

An estimated 359,000 households are expected to gain access to sewage collection, directly benefitting 1.68 million people.

The project involves not only the installation of sewerage collectors and treatment systems, but also investments to improve public services offered by different state bodies as well as the promotion of sustainable sanitation policies in the municipalities. Rio the Janeiro state has committed before the International Olympic Committee (IOC) to invest in the environmental recovery of Baía de Guanabara when its capital, Rio de Janeiro, was chosen to host the 2016 Olympic Games.

The loan is for a 25-year term, with five-year grace and disbursement periods, and a variable interest rate based on LIBOR. Financing for program will be complemented by $188 million from the state government, bringing the total investment to $640 million.

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