IDB Finances Environmental Sanitation in Brazil’s Ipojuca River Basin

21 December 2012: The Inter-American Development Bank (IDB) is lending US$200 million to the northeastern Brazilian state of Pernambuco to expand water and sewage services, increase wastewater treatment, and generally improve environmental sanitation in the Ipojuca River basin.
The State of Pernambuco will provide US$130 million in counterpart funds.
The six-year project has three components. The principal element, worth US$264 million, is the financing of the construction of five wastewater treatment plants, and attendant sewage collection networks, to serve the ten municipalities that are the leading sources of water pollution in the basin: Arcoverde, Bezerros, Caruaru, Escada, Gravatá, Pesqueira, Sanharó, São Caetano, Tacaimbó, and Venturosa. It also will fund rehabilitation of water systems for the municipalities of Bezerros and Porto de Galinhas.
Among other things, the second component, for US$15 million, will finance: the rehabilitation of native vegetation on the banks of the Ipojuca River and the surroundings of reservoirs; the installation of a hydro-meteorological monitoring network, and the revamping of the State Environment Agency's (CPRH) water quality monitoring network; and support for a payment for environmental services (PES) system for the basin.
The final component, for US$20 million, will finance improvements in Pernambuco Sanitation Company's (COMPESA) water and sanitation system operations, including its environmental management system.
The project is expected to add continuous water supply service to 63,000 more families, add sewage connection to 143,000 residences to provide sanitation services to some 450,000 inhabitants, and raise the number of water samples in the area meeting national water quality standards from the current 70% to 90%. [IDB Press Release]