Brazil's Rio Grande do Sul state is in the process of finalizing a bilateral water and sanitation agreement with the Uruguayan government, the state's housing and sanitation secretary, Marcel Frison, told BNamericas.
The contract involves drawing up a joint plan to build potable water supply and sewerage systems in the town of Aceguá, which straddles the Brazil-Uruguay border.
Uruguay's President José Mujica is due to meet with Rio Grande do Sul governor Tarso Genro in the southern state on Tuesday (Nov 8).
Of the total, 6mn reais in financing will come from the Mercosur structural convergence fund (Focem) and 2mn reais from the state of Rio Grande do Sul. The Focem funds should be released by year-end, according to the secretary.
Once the basic plan is in place, tenders will be launched to build water and sanitation systems, one on the Brazilian side and the other for the Uruguayan half.
Brazilian authorities plan to implement similar agreements in another 20 municipalities along the borders with Uruguay and Argentina, the official added.