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IDB approves US$220 million conditional credit line for Uruguay

The Inter-American Development Bank announced today the approval to Uruguay of a US$220 million conditional credit line for investment projects (CCLIP) for investments in sanitation and storm drainage infrastructure in the department of Montevideo. The IDB also announced the first individual loan, under the credit line, for US$118.6 million.

The Municipal Government of Montevideo will execute the project following its sanitation master plan. The master plan defines investment priorities and schedules works to be executed in the period 2007-2022. The cost is projected to be US$260 million.

“The CCLIP will help the Municipal Government of Montevideo to expand the coverage of sanitary sewer and storm drainage systems in the department, increase the amount of sewage that is adequately disposed of, and improve the management of sanitation and storm drainage services,” said IDB Team Leader Kleber Machado. “The first loan will reduce pollution in the Montevideo bay and adjacent beaches in the western part of the department, and protect the beaches that have already been cleaned in the eastern part of the department,” added Machado.

The project supports the IDB’s Uruguay country strategy by seeking to improve the standard of living through greater coverage of sanitation services and by reducing pollution in the bay of Montevideo, as well as strengthening the municipality’s Sanitation Division.

This initiative follows several previous IDB-financed operations supporting the sanitation and drainage of the department of Montevideo for a total of US$244.4 million. These operations have permitted the Municipal Government to gradually increase service coverage, increase the amount of sewage that is adequately disposed of, and improve management and environmental quality of the coastal zone, allowing for safe swimming in the beaches located on the eastern part of the department.

The first individual loan is for a 25-year term, with a six-year grace period, at a variable interest rate.

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