04.04.2016, 09:22
Bolivia will improve water, sanitation and irrigation services with IDB help
OREANDA-NEWS. Bolivia will reform its public policies to improve the coverage and management of irrigation, potable water and sanitation services with a $90 million loan from the Inter-American Development Bank (IDB).
The loan will help the Bolivian government to improve planning, strengthen institutional development, apply financial policies and develop monitoring and evaluation instruments in the areas of potable water, sanitation and irrigation.
The reforms achieved through these reforms will help to expand potable water services to 83 percent of homes, while sanitation services would be expanded to 56 percent of the population.
“The program will improve investment planning, which will allow an emphasis on some of the poorer sectors of society,” said Omar Garzonio, head of the IDB's project team. “These include peri-urban, rural and small-town populations, with the goal of reducing the gap in coverage compared to major urban centers.”
The program also will support irrigation in Bolivia. While one-third of the working population of the country is involved in agriculture, less than 10 percent of the area under cultivation has irrigation, a relatively low level for Latin America. “The country is pushing hard to expand the area with irrigation, and this project will help it to reach that goal,” said Garzonio.
The credit, which will be executed by the Ministry for the Environment and Water, will help to expand irrigated lands by about 60,000 hectares. The financing – the second and last part of programmatic loans for the sector, also will allow substantial improvements in the operational and financial efficiency of water and sanitation services.
The IDB loan has two parts: One for $76.5 million from ordinary capital, for 30 years, with a six-year grace period and an interest rate based on LIBOR; and a $13.5 million installment from the Special Operations Fund, for 40 years, with a 40-year grace period and an interest rate of .25 percent.
About us
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
The loan will help the Bolivian government to improve planning, strengthen institutional development, apply financial policies and develop monitoring and evaluation instruments in the areas of potable water, sanitation and irrigation.
The reforms achieved through these reforms will help to expand potable water services to 83 percent of homes, while sanitation services would be expanded to 56 percent of the population.
“The program will improve investment planning, which will allow an emphasis on some of the poorer sectors of society,” said Omar Garzonio, head of the IDB's project team. “These include peri-urban, rural and small-town populations, with the goal of reducing the gap in coverage compared to major urban centers.”
The program also will support irrigation in Bolivia. While one-third of the working population of the country is involved in agriculture, less than 10 percent of the area under cultivation has irrigation, a relatively low level for Latin America. “The country is pushing hard to expand the area with irrigation, and this project will help it to reach that goal,” said Garzonio.
The credit, which will be executed by the Ministry for the Environment and Water, will help to expand irrigated lands by about 60,000 hectares. The financing – the second and last part of programmatic loans for the sector, also will allow substantial improvements in the operational and financial efficiency of water and sanitation services.
The IDB loan has two parts: One for $76.5 million from ordinary capital, for 30 years, with a six-year grace period and an interest rate based on LIBOR; and a $13.5 million installment from the Special Operations Fund, for 40 years, with a 40-year grace period and an interest rate of .25 percent.
About us
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
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