EIB Global, the international partnerships and development arm of the European Investment Bank (EIB), and Banco de Desarrollo del Ecuador (BDE) announced a $100 million framework loan to finance priority projects in water supply, wastewater and waste management at the EU-CELAC (Community of Latin American and Caribbean States) Summit in Colombia. The operation aims to modernise infrastructure, extend services to underserved populations and support climate change mitigation and adaptation through efficient water systems and improved wastewater treatment. Further waste management investments, including separative collection, will enhance pollution prevention and control.
This operation builds on the successful first BDE water and sanitation framework loan, which is estimated to benefit over 450,000 people in several municipalities in the country. The new loan expands support for waste management, an area with urgent needs, especially in rural communities.
Modernising essential services for communities and climate resilience
The project will enable BDE to implement schemes that improve water quality, sanitation coverage and waste management, benefiting an estimated population of around 1 million people, including the final beneficiaries of the first EIB loan to BDE. By addressing critical gaps in infrastructure, the project contributes to reducing environmental pollution, promoting public health and enhancing socioeconomic development in the regions served.
"Water is essential for life. Improving sanitation processes and waste management will help communities in Ecuador achieve greater well-being and protect their health. And this project is an example of how the EIB, through its high-impact social investments, contributes to improving the living conditions of millions of people around the world," said Nadia Calviño, President of the EIB.
The financed schemes will reduce pollution of water bodies and soil, improve public health by increasing access to safe water and sanitation, and create employment opportunities
“The first financing provided by the European Investment Bank to Banco de Desarrollo del Ecuador B.P. has supported 21 water and sanitation projects in 19 decentralised autonomous governments (GADs), and together with the new agreement being signed, is expected to benefit approximately 1 million Ecuadorians. This agreement reinforces the EIB’s confidence in BDE B.P., the financial arm of the Ecuadorian State, channelling resources into sustainable investments with social, environmental and territorial impact. We remain committed to strengthening partnerships with international organisations and mobilising resources that drive Ecuador’s sustainable transformation, consolidating BDE as a strategic partner for local and regional development,” said Chief Executive of the Banco de Desarrollo del Ecuador Carlos Rivera Bautista.
“Through its backing of the new water, sanitation and waste management initiative in Ecuador, the EIB is making it possible for vital services to be delivered to the communities with the greatest need. This operation not only strengthens public health and climate resilience, but also promotes sustainable local development and green investment, demonstrating EIB tangible impact in improving lives across Latin America,” said EIB Vice-President Ioannis Tsakiris.
Strategic EU and EIB partnership in Ecuador
This financing forms part of the EU Global Gateway Investment Agenda in Ecuador, targeting health and sanitation in areas with the highest prevalence of chronic childhood malnutrition, and is aligned with the Team Europe Initiative for a sustainable economy.
Through this initiative, the EIB is addressing market gaps by providing long-term financing unavailable to BDE in capital markets, enhancing financial sustainability and leveraging investment opportunities for the European private sector in water and sanitation technology and services.
Environmental, social and employment benefits
The financed schemes will reduce pollution of water bodies and soil, improve public health by increasing access to safe water and sanitation, and create employment opportunities, particularly during construction phases. The project is expected to generate lasting benefits in climate adaptation and mitigation, contributing to Ecuador’s national development and environmental objectives.
