The World Bank (WB) approved this Thursday a project aimed at financing affordable and resilient housing in Ecuador for low-income familiesimprove urban infrastructure and services in selected areas, as well as strengthen the Government’s capacity to implement and scale policies to improve access to housing and urban development.

This $100 million project will provide funding for new housing solutions while taking into account existing government programs. The participation of the private sector in the construction of sustainable and universally accessible housing in urban and peri-urban areas will be promoted, WB points out.

It is estimated that the project will benefit approximately 20,000 families. Female-headed households, as well as people with severe and very severe disabilities will be prioritized for access to formal housing and comprehensive neighborhood improvement.

“For the first time in Ecuador, the World Bank together with Miduvi designed a housing financing operation, which will not only address the quantitative deficit, but go further, in solving the qualitative deficit of housing and comprehensive improvement of the neighborhood,” said Minister of Housing Gabriela Aguilera.

“Furthermore, for the first time, Ecuador has a reserve component in case of any danger, the same one that will be activated in the event of the arrival of the El Niño phenomenon.“, the official added.

During the execution of the works, activities will be carried out to improve urban infrastructure and reduce vulnerability to floods, landslides and erosion, such as promoting the use of low-carbon materials and energy-efficient technologies. We will also work with communities to promote an inclusive planning process.

In addition, the project includes a contingency emergency response component that will allow reallocation of funds to address affected housing infrastructure in the event of a disaster.

“Decent housing is an aspiration and a right. Investment in housing and urban improvement are key to creating more inclusive, sustainable and resilient cities. We are supporting Ecuador in reducing inequality gaps and promoting access to quality housing and better services for all,” said Issam Abousleiman, World Bank Country Director for Bolivia, Chile, Ecuador and Peru.

The loan is with a variable margin and has a term of 16 years and 6 months, including a grace period of 6 years.