Govt inks financing deal for US$50mn rural water, sanitation program

Wednesday, January 12, 2011

Ecuador's government has signed a financing agreement with IDB for a program to expand water and sanitation coverage in rural parts of the country.

The Spanish government's fund for water and sanitation in Latin America and the Caribbean will donate US$20mn, while IDB will provide a US$30mn loan, according to Ecuador's government news agency El Ciudadano.

The program aims to install, expand and improve water systems and provide a solution to improve sanitation in low-income rural parts of the country that are lacking or have deficient services, benefiting some 300,000 people.

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The project also involves strengthening the institutional capacity of operators and government regulators responsible for those services.

The water policy outlined in Ecuador's 2008 constitution decentralized the provision of potable water and sanitation, allowing local governments to become service providers. The new funds will be used to help strengthen this capacity, according to the report.