IDB: US$83.2 mln loan to Porto Alegre, Brazil
Integrated Socioenvironmental Program will improve quality of life by restoring water quality, expanding sanitation services and upgrading the urban environment
Washington, United States of America – The Inter-American Development Bank (IDB) 2008-05-01 announced the approval of a US$83.2 million loan to Brazil for the Integrated Socioenvironmental Program in Porto Alegre, Brazil.
The program will be carried out by the Municipal Department of Management and Strategic Support and will focus on:
* Improving water quality in Lake Guaíba and the Cavalhada River;
* Developing urban infrastructure to reduce flood risk along the Cavalhada River;
* Improving the environmental management in the Municipality of Porto Alegre; and
* Promoting efficient municipal water, sanitation and storm drainage services.
“This program will improve the quality of life of the population of Porto Alegre by restoring water quality along the west side of Lake Guaíba and directly benefitting more than 700,000 residents through expanded public sanitation services and urban environmental improvement,” said IDB project team leader Hubert Quille. “The Program will raise the percentage of the city’s treated wastewater from 27 percent to 77 percent,” he added. “It will also reduce the flood-prone area and will expand environmental protection and recreation areas for the city’s population. It will benefit communities along the edges of the Cavalhada River, most of which are low income, and users of roads on both sides of the river.”
The loan is for a 25-year period, with a five-year grace period, at an adjustable interest rate. Local counterpart funds for this loan total US$85.8 million.