Finance for drinking water supply and sewage system in Ecuador

CAF granted last night a loan for US$41.2 million to the Republic of Ecuador for drinking water supply and sewerage services for the Santa Elena Peninsula, Guayas province.

The agreement was signed in CAF headquarters in Caracas by CAF President & CEO Enrique García, and Ecuadorian ambassador in Venezuela, Alfonso Barrera, in the presence of the ministers of Foreign Trade, and Public Works of that country, Benigno Sotomayor and Homero Torres, respectively.

This new credit operation will partially finance the project Regional drinking water supply systems and local sewerage systems, which will supply drinking water to the cantons of Salinas, La Libertad, Santa Elena, Playas, Posorja and other smaller localities, which will reinforce the tourism and industrial potential of the area.

The project began with execution of the works for transfer of the waters of the Daule River to the Santa Elena Peninsula, which received CAF financing of US$55 million. The purpose of the project was to develop regional drinking water systems to supply an estimated population of 750,000, along with industry and irrigation.

Cofinancing The drinking water supply and sewerage system project, whose total cost is US$169 million, is an joint integration and financing effort with CAF and the government of Brazil as lenders, along with local contributions from the government of Ecuador.

The executing agency is the Guayas River Development Studies Commission (CEDEGE), which, in addition to this project, is executing major works such as the Daule-Peripa Hydroelectric Plant – also with CAF finance – and the project for Flood Control and Drainage Improvement in the Lower Guayas River Basin.

CAF is an international financial organization, which supports the sustainable development of its shareholder countries and regional integration, formed by Bolivia, Colombia, Ecuador, Peru and Venezuela, together with Brazil, Chile, Jamaica, Mexico, Panama, Paraguay and Trinidad and Tobago.