IDB Invest led the financing for BRK Maranhão to expand access to water and sewage services in Brazil. With a total investment of R$ 825 million (approximately $135 million), the project combines advanced infrastructure development with operational improvements. IDB Invest and Proparco will contribute each R$ 225 million (approximately $37 million), with Proparco also providing a guarantee to IDB Invest, key for securing long-term local currency financing from other development financial institutions.
The investment aims to achieve 90% coverage of water supply and 70% coverage of wastewater services in the municipalities of São José do Ribamar and Paço do Lumiar, in the state of Maranhão. The project will provide clean water and improved sanitation services to approximately 370,000 people, enhancing public health, climate resilience, and social equity.
The project involves building and operating new infrastructure, including water pipelines, sewage treatment plants, sewers, and water reservoirs, while ensuring an average of 5,700 new water connections annually and expanding access to sewage treatment to an average of 6,600 families each year.
Additionally, the project includes a $14 million performance-based incentive (PBI) package, composed of a $4 million grant, a $5 million senior loan from the United Kingdom Sustainable Infrastructure Program (UK SIP), and a $5 million senior loan from the Canadian Net-Zero and Climate Resilience Accelerator.
The PBIs are contingent on achieving outcomes that mitigate greenhouse gas emissions by prioritizing the adoption of innovative technologies and strategies in wastewater treatment. In addition, the PBIs incentivize the inclusion of small and medium-sized enterprises (SMEs) that are led by women and Afro-descendants into the value chain for water and sanitation's projects in the region.
IDB Invest is also enhancing BRK Maranhão's environmental and social standards, in line with its Environmental and Social Sustainability Policy. Technical advisory services will identify supply chain opportunities for SMEs and assess the economic and health impacts of expanded water and sanitation access.
This partnership provides a scalable model for addressing critical water and sanitation challenges in underserved regions, while aligning with goals on climate resilience and social inclusion. The project is expected to contribute to several United Nations Sustainable Development Goals: Water and Sanitation (SDG 6), Decent Work and Economic Growth (SDG 8), Industry Innovation and Infrastructure (SDG 9), Climate Action (SDG 13), and Partnership for the Goals (SDG 17).
