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Brazil’s State of Pernambuco to improve Ipojuca River basin’s environmental sanitation with IDB support

$200 million loan to finance expanded coverage of sewerage services, higher wastewater treatment rates, environmental improvements

The Inter-American Development Bank (IDB) has approved a $200 million loan to help Brazil’s north-eastern state of Pernambuco promote the environmental sanitation of the Ipojuca River basin through expanded coverage of sanitary sewerage services, higher wastewater treatment rates, and social and environmental improvements.

“The program will support action in three key areas: installation of wastewater collection and treatment systems; support for the basin’s environmental and social sustainability, including the recovery of degraded portions of the riverbank; and institutional strengthening of the Pernambuco Sanitation Company COMPESA and of the Secretariat of Water and Energy Resources,” said Irene Altafin, IDB project team leader.

Expected outcomes of the six-year program include connection of some 143,000 homes (450,000 people) to the sanitary sewerage system and wastewater treatment plants; construction of 1,190 km of sewers and 465 km of collectors; and installation of five wastewater treatment plants. The program will also benefit 63,000 families with connections to the water network by providing them with continuous service throughout the day. 

Other key expected indicators include: raising the quality of water meeting national standards from 70 to 90 percent; a 50 percent increase in the amount of water consumed per person in the Porto de Galinhas seaside resort; and the rehabilitation of 259 hectares of river banks and reservoir surroundings areas for protection of water resources.

The loan is for a 24-year term, including a 6-1/2-year grace period, and at a variable interest rate based on LIBOR. The Government of the State of Pernambuco will provide an additional $130 million in local counterpart funds.