Bolivia: US$126mn CAF loan for water and irrigation projects

The Bolivian government has approved a US$ 126 million 14-year loan from Andean Development Cooperation (CAF) for water and irrigation project (PROAR) as part of a five-year programme. Over 600,00 people will get new (400,000 people) or improved (200,000) access to drinking water.

The projects, involving the Ministry of Environment and Water (MMyA) in coordination with municipal governments, will serve rural scattered populations and small towns. Implementation will start in January 2011.

Related web site: CAF – Programa Agua y Riego para Bolivia – PROAR

Source: ABI [article 232763, in Spanish], 24 Nov 2010

Bolivia, Ecuador and Peru: Oxfam finds critical problems of water supply, pollution

Dwindling water supply for human consumption and irrigation, and river pollution are the main threats facing Bolivia, Ecuador and Peru, according to a study [1] by British aid organization Oxfam International. The study indicates the three countries have “critical” levels of [water] stress which could lead to severe water scarcity if preventive actions are not taken.

[...] While [...] there is currently enough water to cover personal use, which is estimated at 120m3 per person per year, in Peru and Bolivia there are problems with supply for irrigation. The decreasing water supply is partly due to the loss of the surface vegetation layer in hydrological basins, caused by the expansion of agricultural activities, deforestation, overuse and burning.

Climate change is also playing a major role. Over the past 40 years, glaciers in the area have retreated more than 20% and the Amazon river level has also shrunk by 20%.
In rural areas in Bolivia, Ecuador and Peru, they have less than 40% potable water and sewerage coverage.

The decline of available water resources is made more serious by [river] pollution [...] caused by mining activities and oil companies. Heavy metals and chemicals are contaminating both river and underground resources, according to Jeroen Voes, one of the author’s of the study.

Another source of pollution is untreated sewage. In Bolivia and Peru, only 20% of sewage receives treatment, while in Ecuador the figure drops to 10%, according to the study.

More than half of the bigger rivers in these three countries are severely contaminated and some of them have stretches that are biologically dead, such as in the rivers Mantaro, Ene, Corrientes, Huaytará, Napo, Ramis, Rímac and Chira in Peru. The study also cited Bolivia’s Pilcomayo and Rocha rivers, and the Machángara, Guallabamba, Esmeraldas and Guayas rivers in Ecuador.

[1] El agua ante nuevos desafíos. Actores e iniciativas en Ecuador, Perú y Bolivia. View summary in Spanish here

Source: BNamericas [subscription site], 19 Mar 2009 ; Oxfam America [in Spanish] 20 Mar 2009

Bolivia, Cochabamba: work on Misicuni dam and water supply services set to start

Just one of the five interested companies presented an offer to build the dam in Bolivia’s Misicuni multi-purpose hydro project [...].  The objective of the project is to divert the waters from the Misicuni River to supply the Central Cochabamba Valley with potable water, irrigation water and hydropower. The official budget for the project was set at US$81mn and the consortium presented an offer of US$79.9mn. [...] If all goes well, works could begin at the end of February [2009], Misicuni president Ramiro Saniz said. The consortium Consorcio Hidroeléctrico Misicuni is comprised of six companies, led by Italian construction firm Grandi Lavori Fincosit with a 51% stake.

The contract includes the construction of a potable water plant, water pipelines and their respective pumping systems, and an irrigation network that can supply 4,000ha.

The second stage of the Misicuni project has US$81mn in guaranteed financing until it is finished. However, two tunnels and two water uptake points will still need to be built, as well as the hydroelectric component, which is estimated to need a US$100mn investment.

Saniz also said that the water from the Misicuni river is not sufficient to fill the 120m-high dam and that other sources are needed.

The government of Italy will provide a 25mn euro (US$32.4mn) loan for the project. [...] The loan was the result of President Evo Morales’ trip to Europe in search of financial support to expand basic services and develop agriculture in Bolivia.

Source: Business News Americas [subscription site], 23 Jan 2009

Bolivia’s water ministry and Cochabamba department are working to implement potable water services in southern Cochabamba, as part of the new US$ 5.18mn southern integrated water plan. The project will be 70% funded with a US$3.63mn credit line provided by the InterAmerican Development Bank (IDB), which will be channeled by regional development fund FNDR. [...] Works include the installation of distribution lines and systems in six districts in southern Cochabamba, such as Santa Bárbara, Lomas del Sud and Colomani.

Source: Business News Americas [subscription site], 05 Dec 2008

Bolivia: Morales anticipates Spanish aid for water projects

In May 2008, Bolivian President Evo Morales expects to sign a potable water and irrigation financial cooperation agreement with his Spanish counterpart José Luis Rodríguez Zapatero, La Paz state news agency ABI reported. In November 2007, Zapatero announced a US$ 1.5 billion Water Fund for Latin America. According to Morales, Zapatero said most of the funding will go to Bolivia.

Source: BNAmericas.com [subscription site], 10 Jan 2008

Morales announced Bolivia would invest US$621 million in 2008 for potable water services, water resources management and irrigation.

Source: BNAmericas.com [subscription site], 23 Jan 2008