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IDB supports the development and strengthening of environmental management in Uruguay

Bank-financed program will increase the quality of environmental evaluations and controls, reduce paperwork, and cut costs 

The Inter-American Development Bank (IDB) has approved a loan for $5 million to support the development and strengthening of environmental management in Uruguay by improving administrative operations of the Ministry of Housing, Land Use Planning, and Environment DINAMA). 

Uruguay’s National Environment Directorate will have technical responsibility for the program, which will improve the ministry’s capacity to evaluate possible environmental impacts of large-scale investment programs prior to entering the authorization system. 

The program also will also develop clearer rules for the private sector and more systemic and efficient procedures for the public sector in order to reduce paperwork, lower costs, and increase the quality of assessments and environmental controls. 

Financing will be provided for equipment to strengthen the laboratory capacity of DINAMA through technologies to automate the processing of samples and equipment, as well as for software and technical assistance to implement the second phase of environmental information system. 

Expected outcomes include a 20 percent reduction in the time needed to authorize large projects, a 30 percent reduction in authorization time for other projects, a 100 percent increase in the number of subjects addressed by environmental controls, and a 40 percent reduction in nitrogen and phosphorus loads discharged into the Santa Lucia River Basin from existing industrial point sources. 

The IDB loan for $5 million has a term of 25 years, a 5-1/2 year grace period, and an interest rate based on LIBOR. The local counterpart contribution totals $2 million.

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