Brazil's northeastern states of Bahia and Sergipe have been allocated 60mn reais (US$34mn) for basic sanitation works under the country's growth acceleration plan (PAC), the national integration ministry said in a release.
The ministry has signed a 40mn-real agreement with the Bahia state government to fund the works, which will benefit 230,000 residents in 16 municipalities.
State water and sewerage utility Embasa will be in charge of the Bahia projects.
The integration ministry also signed an agreement with Sergipe last month including some 20mn reais in investments. More than 21,000 residents in the municipalities of Tabi, Pacatuba and São Francisco will benefit.
Projects will be performed by Sergipe state utility Deso.
The work is part of the São Francisco river basin revitalization project, being carried out by the federal government's company for the development of the São Francisco and Parnaíba valleys Codevasf.
The project calls for some 2.5bn reais in investments by 2014.