The Inter-American Development Bank (IDB) has allocated a $2m loan to Banco ProCredit to help expand and improve access to clean and affordable water to poor communities in El Salvador.
IDB loan will allow ProCredit to begin a credit and technical assistance program for communal water projects throughout the country.
ProCredit will use proceeds from the IDB loan, in addition to $2 million of its own funds, to lend to local small-scale community water operators to improve, repair and expand their water supply systems.
As many as 14,000 low income families are expected to improve or gain access to affordable water services.
ProCredit loans will be used by operators to expand their networks and increase connections, drill wells, build, repair, and maintain water tanks and other equipment, buy or replace pumping equipment as well as purchase land where wells exist, in order to guarantee water sources.
Technical assistance for the program will be implemented by the Foundation for Sustainable Development of El Salvador.