The Inter-American Development Bank (IDB) and the Government of Spain will provide a total of $139 million in grants and loans to Haiti and Bolivia. These are the first projects jointly funded by the US$ 620 million IDB and Spanish Cooperation Fund for Water and Sanitation in Latin America and the Caribbean (the Spanish Fund), an initiative announced in 2008 by Spanish Prime Minister José Luis Rodríguez Zapatero.
In Bolivia, the Spanish Fund will contribute US$ 80 million in grants and the IDB another US$ 20 million in ordinary and concessional loans to extend water and sanitation services to some 500,000 people in periurban areas of El Alto, La Paz, Cochabamba, Santa Cruz, and Tarija who are currently without service.
The Bolivian Government estimates that investments of around US$ 700 million are needed in urban areas to achieve the Millennium Development Goals by 2015. Meeting these goals will require increasing access to water supply and sanitation for 1.4 million and 1.7 million inhabitants, respectively.
The US$ 100 million from the Spanish Fund and the IDB will be used for four principal activities: construction of new infrastructure in unserved areas; completion of water and sanitation master plans for La Paz, El Alto, Santa Cruz, Cochabamba and Tarija; institutional strengthening for relevant service operators and government authorities; and establishment of a full-time program coordination unit to audit, evaluate and monitor project execution.
In Haiti, the Spanish Fund will contribute US$ 20 million and the IDB another US$ 19 million, both in grants, to help expand and improve water and sanitation services for around 150,000 people Saint-Marc, Port-De Paix, Les Cayes, Jacmel, Ouanaminthe and Cap-Haitien.
Haiti has no sewer networks and, according to the 2003 census, only 8.5 percent of its households are connected to a drinking water distribution system.
To tackle this situation, $14.2 million will help expand the drinking water coverage and US $17 million will be used to help finance individual and collective sanitary systems installation, develop waste collection, transportation and disposal systems, facilitate maintenance of storm drainage systems, and support public hygiene programs. The funds will also finance the institutional and technical strengthening of the National Directorate of Potable Water and Sanitation (DINEPA), as well as a campaign to eradicate parasitic worms associated with poor water and sanitation services, with particular emphasis on treatment of children between the ages of 1 and 12 years.
In addition to Haiti and Bolivia, the IDB and Spain are expected to jointly finance projects in Brazil, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Paraguay, Peru, the Dominican Republic and Uruguay between now and mid-2010. In all, Spain will contribute US$ 407 million in grants to these projects, while the IDB will contribute US$ 213 million in grants and loans, while also assuming the bulk of the project preparation and execution costs. Governments in the region will contribute an additional US$ 77 million in counterpart funds. Around 4 million people in low-income urban and rural communities are expected to benefit directly from these projects.
IDB video on the Spanish Water and Sanitation Cooperation Fund
Source: IDB general press release – Bolivia press release - Haiti press release, 16 Oct 2009