IDB Invest has provided a BRL470 million (US$85.9 million) corporate loan to Companhia de Saneamento Básico do Estado de São Paulo S.A. (Sabesp), one of the world’s largest sanitation companies by population served, to support better environmental and sanitary conditions in the Metropolitan Region of São Paulo.
The proceeds will be used to partially fund several activities, including optimizing and expanding the sewage collection network, with the construction of 200 kilometers of collection networks and 160 kilometers of interceptors and trunk collectors, and the expansion of the capacity of the Sewage Treatment Plants: Parque Novo Mundo, São Miguel Paulista and Barueri.
IDB Invest’s support will improve environmental and sanitary conditions in the Upper Tietê River watershed in the Metropolitan Region of São Paulo, thereby reducing the sewage discharged into the Tietê River, through the sustainable expansion and optimization of the system for collecting, transporting, and treating sewage.
The deal is expected to contribute to six United Nations Sustainable Development Goals (SDGs)
Established in 1992, the Tietê Project aims to contribute to the progressive revitalization of the Tietê River and its tributaries, in the Alto Tietê Basin. In 2020, the New Legal Framework for Basic Sanitation in Brazil determined a target of universal access to water distribution, sewage collection and treatment services by December 2033.
IDB Invest’s advisory services will help align the project’s environmental and social standards with IDB Invest’s Environmental and Social Sustainability Policy, following strict international standards. It will focus on the expansion of Sabesp’s environmental and social management system for the project, update Sabesp’s natural disaster risk management program, conduct a health and safety risk analysis for the wastewater treatment plants, and develop informational content to prevent and raise awareness on gender-based violence.
The deal is expected to contribute to six United Nations Sustainable Development Goals (SDGs): Good Health and Well-being (SDG 3), Clean Water and Sanitation (SDG 6), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Sustainable Cities and Communities (SDG 11), and Climate Action (SDG 13).