Mexico: IDB loans US$ 600 million to improve water, sanitation and hygiene in rural communities and schools

Two Inter-American Development Bank (IDB) loans will help bring drinking water to 630,000 people, upgrade water and sanitation facilities in 20,000 schools, and reduce water-borne illnesses among 1.3 million students.

The first loan, for US$ 350 million, will finance the Water, Sanitation, and Hygiene in Basic Education Program, that combines improvements in the physical infrastructure of 20,000 schools with a comprehensive programme of hygiene education and infrastructure maintenance. The program gives priority to schools in municipalities with high epidemiological risk indicators and high enrollment levels. By 2014, the programme aims to achieve a a 30 percent reduction in the prevalence of diarrheal diseases in participating schools, and a drop in illness-related absenteeism is expected to drop from 17.9 per cent to 12 per cent. The number of schools that are not connected to a water system will be reduced from 7,966 to 1,980 properties.

The second loan, for US$ 250 million, will finance the Program for the Sustainability of Water Supply and Sanitation Services in Rural Communities III (PROSSAPyS III, for its initials in Spanish). This programme will expand piped water service to at least 630,000 people and access to a sanitation system to 450,000 people living in rural communities with less than 10,000 inhabitants. It builds on two previous PROSSAPyS programmes, which have benefitted some 6,000 communities (3.2 million people) with water supply projects and 2,200 communities (1.6 million people) with sanitation projects.

The total cost of the PROSAPyS III program is US$ 500 million, of which Mexico will provide half in local counterpart funds. The IDB loan for $250 million is for a 25 year term, with a 4 year grace period and an interest rate based on LIBOR.

The IDB loan for US$ 350 million will finance the whole Water, Sanitation, and Hygiene in Basic Education Program.

More information:

Source: IDB, 11 Jan 2011

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