The IDB loan will allow Rio de Janeiro state’s government to advance in the implementation of the Sanitation Program for the Municipalities of Baia de Guanabara, a region that is home to over ten million people.
The program is part of the sanitation pact, a plan approved in April aimed at expanding sewage collection to 80% of the state’s population by 2018.
The loan is for a 25-year term, with five-year grace and disbursement periods and a variable interest rate based on LIBOR.
The project involves not only the installation of sewerage collectors and treatment systems, but also investments to improve public services offered by different state bodies as well as the promotion of sustainable sanitation policies in the municipalities.
The IDB project team leader Yvon Mellinger said the goal is to improve sewage collection and treatment levels, lowering the organic domestic waste that reaches water channels.
"As a result, the program will help improve the Baia de Guanabara’s water quality," Mellinger said.
An estimated 359,000 households are expected to gain access to sewage collection, directly benefiting 1.68 million people.
