Costa Rica has received a $20m grant from the Spanish government and a $73m loan from the Inter-American Development Bank (IDB) to improve its drinking water, sanitation and wastewater treatment services.

The bank’s loan and the grant from the IDB-managed Spanish Cooperation Fund for Water and Sanitation in Latin America and the Caribbean is in addition to a $150m loan that Costa Rica has secured from the Japan International Cooperation Agency.

Additionally, Costa Rica’s government will provide $77m in local counterpart funds for the project, which will invest a total of $320m to expand and rehabilitate drinking water and sanitation services.

Of the program’s total budget, $274m will be used for construction and rehabilitation of sewer networks and collectors in the San Jose metropolitan area including more than 160km of pipes, a treatment plant, a transmission tunnel, and connections between homes and city networks.

Another $26m will finance the construction of drinking water systems at 112 rural communities and development of 500 individual sanitation systems for poor sectors of the population, which currently use pit latrines with a high risk of contaminating the water table.

Finally, the project will spend $14m on the construction and rehabilitation of 73km of drinking water networks and of 15km of sewers at ten low-income periurban areas of San Jose.