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El Salvador to improve water services with Spanish grant and IDB support

The Inter-American Development Bank approved a $44 million program for water and sanitation in El Salvador, backed by a $20 million loan from the IDB and a $24 million grant from the Spanish Cooperation Fund for Water and Sanitation in Latin America and the Caribbean.

The project’s main goal is to improve living conditions in El Salvador through the provision of adequate water and sanitation services. It will finance the expansion of coverage in rural areas with high levels of extreme poverty, the sustainable management of water resources and improvements in efficiency and sustainability of services provided by ANDA, the leading water utility.

Under the Rural Water and Sanitation Program, 85 water systems will be built, benefiting more than 6.000 households in poor areas. The program will help the Salvadorian government make progress toward its goal of increasing water service coverage to 80 percent in the country’s 100 poorest townships, according to its 2010–2014 development plan.

The five-year program will have three executing agencies: the Social Investment Fund for Local Development, the Ministry of the Environment and Natural Resources, and ANDA.

This is the tenth project carried out jointly by the IDB and the Spanish Cooperation Fund, which was established in 2008. Spain and the IDB are expanding water and sanitation services through projects in countries including Bolivia, Guatemala, Haiti and Peru. The partnership is also preparing projects focusing on rural and peri-urban areas of Costa Rica, Ecuador, Honduras and the Dominican Republic.

The IDB loan is for 25 years, with a 5-year grace period and an interest rate based on LIBOR.

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