The Inter-American Development Bank today announced the approval of a $40 million loan to Bolivia to improve potable water and sanitation services in small municipalities of up to 5,000 inhabitants.
The resources will finance water supply and sanitation projects throughout the country and the institutional strengthening of the municipalities and their basic sanitation and housing units. Funding will support establishment of a database for the sector.
A component of the program, to be carried out by the Ministry of Housing and Basic Resources,* supports community participation in the preparation, execution, operation, and maintenance of the projects.
The total cost of the program is $56 million. Local counterpart funds total $16 million.
The IDB loan from the Fund for Special Operations is for a 40-year term, with a 10-year grace period, at an annual interest rate of 1 percent during the grace period and 2 percent thereafter.