The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved a loan of $307.8 million to finance a project aimed at improving and expanding access to urban wastewater treatment and stormwater drainage services in the city of Juliaca, Puno region, Peru.
The project also seeks to enhance the operational and financial management of the Water and Sanitation Service Provider SEDAJuliaca, responsible for delivering water and sanitation services, and the Provincial Municipality of San Román, responsible for providing stormwater drainage services, in order to improve their performance and service quality.
This is the second operation under a Conditional Credit Line for Investment Projects (CCLIP), approved by the Board in December 2023 to support the provision of water, sanitation, and stormwater drainage services in this Peruvian city.
The project will directly benefit around 48,000 households through wastewater treatment and will reduce the physical vulnerability of 13,400 households to flooding thanks to the stormwater drainage system. More than 140,000 households will benefit indirectly from the implementation of the wastewater treatment system.
The program aligns with Conexión Sur, a regional initiative that seeks to improve connectivity and competitiveness in South America to promote sustainable growth.
The $307.8 million loan has a repayment term of 17 years, a grace period of 6.5 years, an interest rate based on SOFR, and a local counterpart of $68.2 million.
