IADB finances water and sanitation project in La Guajira
The Inter-American Development Bank has approved two grants and a loan - totalling $62.75 million - for the drinking water and sanitation program of the Department of La Guajira, in northern Colombia.
The funds consist of a non-reimbursable donation from the bank for $7.75 million; another non-reimbursable donation of $5 million from the Swiss Agency for Development and Cooperation; and a loan from the IADB's ordinary capital for COP182 million (about $50 million).
The specific goals of the program are to increase the coverage and quality of drinking water and sanitation services in urban areas of the Department of La Guajira. Within five years, the program aims to practically double drinking water coverage in urban areas, from the current 20% to 38%, and ensure a minimum supply of eight hours a day. It also aims to increase home access to sewerage networks from 25% to 27%. Infrastructure will be built to protect 700 homes from floods in the municipality of Fonseca.
The loan for COP 182 million Cloanis for a term of 14 years and nine months, with a grace period of the same duration, and at a variable interest rate based on the local IBR index. The executing agency is the Ministry of Housing, City and Territory of Colombia.
