This morning the loan was signed. The European Union (EU)-backed project will improve access to water and sanitation services throughout the country.
The European Investment Bank (EIB) will collaborate with Development Bank of Ecuador (BDE) and will partially finance the construction and rehabilitation of water supply, wastewater and rainwater networks throughout the country under the framework of Ecuador’s national program Water and sanitation for all.
The EIB loan, of $100 million, will help the construction of sewage networks, wastewater treatment plants and rainwater collection networks in coastal areas, reducing the discharge of plastics into the Pacific Ocean.
“The modernization of the region’s water supply and sewage systems will allow considerable energy savings, reduction of water losses from networks and improvement of wastewater treatment systems. It will also be a long-term investment in the country’s resilience to pandemics like COVID-19, by providing stable access to clean drinking water.”, says a statement.
The Vice Minister of Finance, Bernardo Orellana, has highlighted the importance of multilaterals in the State’s financing strategy. The credits received have been at low cost, long terms and generous grace periods.
Also, the General Manager of the BDE, Fabián Carrillo, has stated that in the 2022-2025 Strategic Plan the public bank plans to double its financial impact with the municipalities, their public companies and associations. In this sense, the relationship with international cooperation, the European Union and the German representation, means access to agile and timely lines of credit.
Taking into account the climate action and urban development dimension of the investments that will be supported by the Framework Loan, the EIB and the BDE will collaborate with the German international cooperation agency (GIZ) within the framework of the so-called Felicity initiative.
Felicity is a project preparation service funded by the German International Climate Initiative (IKI), which is run in cooperation with GIZ. The initiative helps project promoters in cities to carry out feasibility studies and other preparatory activities, as well as to develop the capacities of the BDE.
The ambassador of the European Union in Ecuador, Charles-Michel Geurts, He expressed that, in the European Union, they are committed to supporting a sustainable post-Covid-19 recovery from an inclusive social approach and respect for the environment. “That is why today, through the EIB, we invest in the resilience of Ecuadorian municipalities, guaranteeing permanent access to drinking water and sewerage to vulnerable populations for their socioeconomic development and protection of the health of Ecuadorians.”
✅Charles-Michel Geurts, Ambassador of the European Union points out: It is a great joy to start the year 2022 with an emblematic project that highlights the fraternal relationship between Europe and Ecuador
???? This project is emblematic as it generates a multiple impact.#Together We Fulfill pic.twitter.com/X8uCgMUbk0
— Development Bank of Ecuador BP (@BDEcuadorBP) January 21, 2022
He also added that this is an excellent example of international cooperation, within the framework of the actions of Team Europe, to respond to the COVID-19 crisis; at the level of the European Union through the European Investment Bank, Germany and the GIZ; and at the local level with the Development Bank of Ecuador.
In addition, it is a first milestone in the efforts to develop the EU’s decentralized cooperation with the Decentralized Autonomous Governments (GAD), which will be accompanied by non-reimbursable funds from the EU for technical assistance.
European Investment Bank delivers $59.8 million in credit for drinking water and sanitation in the Portoviejo canton
Impact of the project in Ecuador
Specifically, investments will focus above all on improving the quality of water and sanitation services, as well as providing such services to households that are not currently connected to the drinking water supply and sewerage networks. . Some 500,000 Ecuadorians could benefit from this intervention.
The Vice President of the EIB, Ricardo Mourinho Félix, responsible for Latin America, has pointed out that drinking water and sanitation are crucial to promoting sustainable economic growth and protecting human health during outbreaks of infectious diseases such as COVID-19.
“As the world’s largest lender in the water sector, the EIB is pleased to provide financing and contribute its expert knowledge to help the BDE improve drinking water supply services and sanitation networks in the region. This project reinforces our strong track record of supporting high-impact investing in Ecuador and throughout Latin America.”(I)
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