IDB Supports Uruguay to Improve Housing and Services for Vulnerable Communities

WASHINGTON — The Board of Executive Directors of the Inter-American Development Bank (IDB) approved financing for $78.75 million to expand access to housing, basic services, and opportunities for children, adolescents, migrant populations, and other vulnerable households in Uruguay, while improving living conditions and social integration in disadvantaged neighborhoods.  

The program is expected to benefit more than 31,000 people directly, including approximately 2,700 migrants, as well as an additional 62,500 people indirectly, building on more than two decades of collaboration between the IDB and Uruguay to support inclusive urban development and stronger social cohesion. 

The initiative targets persistent gaps in semiformal urban areas, where many households face overcrowding, inadequate housing conditions, and limited access to basic services, challenges that particularly affect migrant families.  

According to the IDB Group Country Strategy with Uruguay 2026–2030, 76% of migrants live in inadequate housing conditions, including informal settlements, pensions, homelessness, or other precarious accommodations. This program will promote greater urban integration by improving infrastructure, expanding housing solutions, and strengthening access to education and care services. 

“Improving living conditions in vulnerable neighborhoods is essential to building more inclusive and resilient cities,” said Tatiana Gallego, Housing and Urban Development Division Chief at the IDB. “This program supports Uruguay’s efforts to expand access to quality housing and services, while ensuring that children, families, and migrant communities can fully participate in and benefit from urban development.” 

Investments will include water, sanitation, drainage, electricity and lightning networks, as well as safer public spaces, alongside housing improvements, new construction, and support for tenure regularization. 

The plan supported by the IDB will also expand access to early childhood services, education, and job training, helping reduce barriers to social and economic inclusion for vulnerable households across targeted communities. Institutional strengthening will improve coordination across government agencies and enhance data systems for planning and service delivery. 

The program includes a $70 million loan from the IDB’s Ordinary Capital and $8.75 million in grant resources. It is the fourth individual operation under a Conditional Credit Line for Investment Projects (CCLIP) that supports Uruguay’s long-term neighborhood improvement efforts while advancing the inclusion of vulnerable populations, including migrants.