CAF will support institutions to improve design of water and sanitation projects

In order to achieve the goals of universalization of water and sanitation services in Latin America, countries of the region will need to invest in the sector an estimated 0.7% of their gross domestic product (GDP) each year in the 2018-2030 period. This includes 0.3% of GDP to close the infrastructure gaps and provide access to water and sanitation services, and 0.4% of GDP to ensure a proper operation and maintenance of systems.

In order to support governments in the provision of high-quality services, CAF—development bank of Latin America—, as the main financier of infrastructure and a broker of funds for the region, is launching a Pre-investment Program for the Water Sector, which will help improve the quality of studies and reduce project cycle times by financing pre-investment actions and activities required for initiatives, programs and projects prioritized by CAF member countries to fully complete their preparation and study stage, under high-quality standards, in order to advance them to their investment and execution phase.

“This program seeks to improve the quality of the projects on access, expansion and improvement of services. Similarly, it seeks to attract the interest of regional and extra regional entities and institutions for project financing, increasing the supply of funds and knowledge transfer, for the benefit of the most vulnerable groups in Latin America,” said CAF executive president Luis Carranza.

The Pre-investment Program for the Water Sector will prioritize comprehensive projects that include one or more of the following components: (i) safe access to water and sanitation services; (ii) waste water treatment; (iii) rural water and sanitation services associated with the fight against child malnutrition; (iv) investments with a circular economy approach and efficient use of water resources; (v) urban drainage and other investments aimed at reducing the risks of natural disasters; (vi) irrigation for family farming, and (vii) multipurpose water projects.

During 2019-2022, projects and programs financed by CAF in the water sector are expected to benefit 11.2 million people with new connections or improved potable water service; 3.2 million people with new connections or improved sanitation services; 4.6 million people with sewage treatment services; around 96,000 families with irrigation for small-scale agricultural infrastructure; and more than 10 million people with reduced exposure to the risk of floods and droughts.