The Inter-American Development Bank (IDB) has approved a $100 million loan to improve environmental conditions and sanitation for the inhabitants of Brazil's Federal District.
This Multiple Works Program will enhance the water supply service and expand and optimize wastewater collection and treatment. It will also and boost these systems’ energy efficiency and strengthen the business management of Companhia de Saneamento Ambiental do Distrito Federal – CAESB, the utility responsible for implementing the project.
An estimated 1.5 million people in the Federal District will directly benefit from the program through improved wastewater treatment. In addition, 35,000 inhabitants will be connected to wastewater collection and treatment services for the first time. In terms of water supply, 1.75 million people who are already connected to the system will see significant improvements from the program.
This operation will be used to invest in water and sanitation infrastructure, and in making the systems operate more efficiently
As the program bolsters CAESB’s performance, an estimated 3.1 million people in the Federal District will indirectly benefit from access to sustainable, higher-quality basic services, improving their quality of life.
This operation will be used to invest in water and sanitation infrastructure, and in making the systems operate more efficiently. The program will also implement measures to save electricity and restore and upgrade operational water and sanitation facilities.
The lending program will also strengthen CAESB’s operational and commercial management. Measures for this purpose will include a gender and diversity action plan, a plan for training on gender equality and assisting people with disabilities, and a strategy to boost digitalization and technological innovation in its operations.
The $100 million IDB loan has a 24.5-year repayment term, a 6-year grace period, an interest rate based on the Secured Overnight Financing Rate (SOFR), and an additional $25 million local contribution.
