EIB invests USD 60 million to modernize water supply and sanitation in Portoviejo, Ecuador
- December 10, 2020
- Posted by: Lyn Wilson
- Category: Corporate, Investment and Finance, Water Issues, South America
The project to improve water supply infrastructure and waste water treatment facilities in the Portoviejo region in Ecuador is supported by the European Union. The water project contributes to the achievement of a number of Sustainable Development Goals and also to building Ecuador’s resilience to pandemics such as Covid-19 providing steady access to clean drinking water.
The operation will be co-financed by the Inter-American Development Bank (IADB), Spain’s Fund for the Promotion of Development (FONPRODE) managed by the Spanish Agency for International Development and Cooperation (AECID), and EU’s Latin America Investment Facility (LAIF).
The European Investment Bank (EIB) USD 60 million loan to the Decentralized Autonomous Municipal Government of the Canton Portoviejo (GAD of Portoviejo) will enable the following:
- Construction of sewer networks
- Construction of wastewater treatment plants and stormwater networks close to the coast
The restructuring of these facilities consequently contributes to the implementation of the Clean Oceans Initiative.
The modernization of water supply and sewerage systems in the region will lead to substantial energy savings, reducing water losses in networks and an improvement in wastewater treatment operations.
EIB Vice-President for Latin America Ricardo Mourinho Félix, said:
“Clean water and sanitation are essential to boost socio and economic growth, and to protect human health during infectious disease outbreaks such as the COVID-19. As the largest lender to the water sector globally, the EIB is pleased to be financing and providing its expertise to help the Portoviejo government rehabilitate the region’s drinking water distribution network by improving access to the service, efficiency, quality and resilience to mitigate the adverse effects of climate change. This project builds on our strong track record of supporting high-impact investment in Ecuador and across Latin America”.
EU Ambassador to Ecuador, Charles-Michel Geurts said:
“Alongside this loan, the European Union will also contribute with a EUR 10.4 m grant via the LAIF facility (Latin American Investment Facility) which will allow the provision of technical assistance for the contracting process, financial management, technical supervision, social and environmental follow-up.”
He also commented:
“This project is an excellent example of international cooperation, at a European level with the EIB, AECID and LAIF; as well as at a regional level with the IDB. It’s only by joining forces we will be able to face the challenges that Ecuador is experiencing.”
The investments will specifically enable PORTOAGUAS, (the utility serving Portoviejo) to provide 90,000 inhabitants with safe drinking water, and around 22,500 with wastewater services. The water supply project financed by the EIB consists of a new water supply system for several rural parishes of the Cantón of Portoviejo which will meet both current and projected demand until 2050.
Source : https://www.eib.org/en/press