WASHINGTON — The Inter-American Development Bank (IDB) has approved a $250 million loan to help Guatemala enhance the environment of the Motagua River Basin and the quality of life of its residents.
The operation, which has been approved by the IDB's Board of Executive Directors, will finance a program to expand solid-waste collection and disposal. It will also increase treatment of effluents and discharges, strengthen water quality monitoring and control at the national level, and improve local management of sanitation and solid-waste services.
The program will directly benefit 166,000 households with access to sanitation and 225,000 households with proper solid waste management. It will also improve the quality of the effluents discharged in the watershed, promote a circular economy for solid waste, and increase formal employment among recyclers, particularly women.
The Motagua River Basin is the largest watershed in the country, covering 96 municipalities in 14 departments and home to approximately four million people. Currently, the basin faces problems with solid and liquid waste pollution, deforestation, forest fires, decreased water flow, and erosion. These problems also affect some areas in Honduras, requiring a coordinated, binational effort.
Proper solid waste management will require an estimated investment of at least $420 million, while achieving safe sanitation for this population by 2035 will require approximately an additional $2.14 billion.
This operation is the first of several planned interventions in the Motagua River Basin, such as building sanitation systems in the northern sub-basin of the Las Vacas River, in the Guatemala City Metropolitan Area. Projects for integrated solid waste management centers and municipal composting units will also be launched.
The program includes measures to strengthen institutional capacities and improve the integrated management of solid waste, sanitation, and water resources. These initiatives include support for modernizing the Ministry of Environment and Natural Resources and the Municipal Development Institute.
The $250 million operation has a 22.5-year repayment term, an eight-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).
About the IDB
The Inter-American Development Bank (IDB) is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the IDB works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise and knowledge, it promotes growth and well-being in 26 countries.
Simon,Luis Alejandro
Project information
Environmental sanitation program in the Motagua River basin - Stage I
Guatemala y el BID