IDB approved US$151mn for water projects over past four years

- Wednesday, July 27, 2011

IDB approved US$151mn for water projects over past four years

IDB has approved loans totaling US$151mn for Bolivia's government over the past four years aimed at improving water and sewerage service.

The multilateral provided US$70mn for an urban basic sanitation program focusing on medium-size cities, US$40mn for a water and sanitation program for small towns and a loan of US$21mn for a small community water program, the bank said in a release.

The lender also approved US$20mn in 2009 for water and sanitation in outlying urban areas.

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During 2011, the bank will approve loans totaling some US$252mn for Bolivia, according to IDB president Luis Moreno.

IDB holds some US$1.04bn of Bolivian debt and will continue to approve loans because the country has shown strong economic management, Moreno said at a press conference with Bolivia's President Evo Morales.

The multilateral approved some US$180mn in 2010 and is working on a five-year strategic lending plan for the country, state news agency ABI reported. Loans are expected to reach US$300mn in 2012.

NEW APPROVALS

During his visit to the country, Moreno signed an agreement for US$30mn which will be used to finance drainage projects in capital La Paz and neighboring El Alto.

IDB also finalized a US$15mn loan agreement for the La Paz municipal government, to be used for flood prevention works.

The project includes installing 18km of rainwater drains, and building upper walls and channels. Work is due to be launched next year in districts 8, 3, 5 and 7, which are considered the most vulnerable to flooding due to heavy rain and inadequate drainage infrastructure.