Colombia receives support for investment program in potable water and sanitation

With the objective of improving the conditions of coverage, quality and efficiency of the services of potable water, sewerage, and collection and disposal of solid waste in 24 municipalities of Cesar department in Colombia, the Andean Development Corporation (CAF) today approved a loan for US$42.5 million.

CAF President & CEO Enrique García said the operation was part of the Corporation’s actions to stimulate an integrated development agenda for the region, by creating initiatives that promote integrated stability, efficiency and social equity. He emphasized the importance of supporting projects that address a basic need in a sector of the population with high levels of poverty and exclusion, where social and environmental institutions are being developed.

With this loan for the potable water and sanitation program of Cesar department, CAF is cooperating with the national government’s efforts to execute a multiple action agenda which requires finance for investment in the optimization and expansion of the physical infrastructure essential for the adequate provision of the services of potable water, sewerage, and trash collection.

The Program also aims to strengthen the business, financial and management capacity of the municipal service providers so that they can manage, operate and maintain the infrastructure works and begin an integrated preservation and management plan for the river basins of Cesar department.

One of the innovative elements of this program, which will benefit over 370,000 people, is the long-term regional approach to addressing the demands of the population in the area of basic services, based on the ordered and efficient use of the revenue from coal royalties.

In response to the needs of Colombia in its development process, during the last five years CAF approved operations totaling US$3.90 billion for the public and private sectors, and disbursed about US$2.80 billion, representing 27% of all disbursements made by the institution in the region. In 2004, Colombia was the country with the highest approvals of all Andean countries, capturing 26% of the total.