The Brazilian company is installing 80km of a sewage collection network across several city districts.
The natural disaster is said to have affected the water supply of 300 neighborhoods around the city.
The imitative entails the construction of a wastewater treatment plant that would be the largest in Colombia. It is expected to be finished by 2024.
The financially troubled state government wants to privatize the utility to raise funds. However, any privatization plan is set to face a number of challenges.
The São Paulo state water utility will make the investment in the city of Itaquaquecetuba.
The World Bank said the loan - a first for the Caribbean - was part of ramped-up efforts to improve the region's governments' capacity to manage disasters.
The public works ministry stated that climate change-related events have caused an "significant deterioration ofthe country's road networks."