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More than 1.6 million Bolivian households will receive water and sanitation services with IDB support

$78 million loan will help strengthen reforms in water, sanitation, and water resources 

Bolivia will increase water and sanitation coverage and improve services for more than 1.6 million households with financing provided by a $78 million loan from the Inter-American Development Bank (IDB). This is the first of two operations designed to support reforms in the country’s water, sanitation and water resources sectors.

The project will contribute to the reform of Bolivia’s water, sanitation, and water resources sectors and help develop a policy and institutional framework for the management of these services that will result in coverage rates of 88 percent for water and 73.5 percent for sanitation by 2015.

"In addition, this program will support further improvements in the delivery and sustainability of these services, and reduce the effects of flooding on productive areas through proper management of water resources," said Edgar Orellana, IDB project team leader.

At present, Bolivia’s water and sanitation coverage is low in peri-urban metropolitan and rural areas.There are also extensive deficiencies in wastewater treatment, with only 30 percent of collected sewage receiving treatment of any kind.

The government hopes to increase investment in these sectors, focusing priority attention on peri-urban areas of major cities as well as on small communities and rural areas. It also seeks to strengthen the participation of governments and municipalities in carrying out investments through the provision of technical assistance and community development activities.Bolivia also will implement a national water efficiency program together with initiatives to improve the quality and sustainability of services, among other activities. 

The project aims to strengthen sectoral planning and organizational and institutional development of entities operating in the sectors, improve the implementation of financial policies, and develop monitoring and evaluation tools.

The IDB loan includes $62.4 million from the ordinary capital for a term of 30 years, with a 72-month grace period, and an interest rate based on LIBOR; and $15.6 million from the Fund for Special Operations for a 40-year term and grace period at a reduced interest rate of 0.25 percent.