The Board of Executive Directors of the Inter-American Development Bank has approved $78.75 million in financing for an urban upgrading program in Uruguay, with a strong focus on expanding access to water, sanitation, and drainage services in vulnerable neighborhoods.
The initiative targets semi-formal urban areas where households often face limited infrastructure, overcrowding, and gaps in basic services. Planned investments include upgrades to water supply systems, sanitation networks, drainage, electricity, and lighting, as well as improvements to public spaces.
The program is expected to benefit more than 31,000 people directly and an additional 62,500 people indirectly. It builds on long-standing cooperation between the Inter-American Development Bank and Uruguay on urban development and social inclusion.
The program is expected to benefit more than 31,000 people directly and an additional 62,500 people indirectly
According to project information, many migrants in Uruguay live in inadequate housing conditions, including informal settlements and other precarious arrangements. The program seeks to address these gaps through infrastructure expansion, housing improvements, and tenure regularisation.
Tatiana Gallego, Housing and Urban Development Division Chief at the Inter-American Development Bank, said the initiative supports efforts to improve living conditions in vulnerable neighborhoods and expand access to quality housing and essential services, while ensuring that children, families, and migrant communities can fully participate in urban development.
The financing includes a $70 million loan and $8.75 million in grant resources, and is the fourth operation under a broader investment framework supporting neighborhood upgrading and social inclusion in Uruguay.
