Uruguay Credit Agreement for USD 40 Million Signed

(Caracas, July 9, 2010).- A loan agreement for USD 40 million was signed today at CAF Headquarters for the implementation of the Maldonado–Punta Del Este System Effluent Treatment and Disposal Project. The instrument was signed by CAF executive president Enrique García and Uruguay’s Minister of Economy and Finance Fernando Lorenzo, as guarantor of the loan granted to state-owned Sanitary Works Administration (OSE), the implementing agency.

This project seeks to improve the quality of life and boost social, economic and tourist development in the Department of Maldonado, by enhancing the sanitary and environmental conditions of the capital city and the tourist area in and around Punta del Este.

CAF executive president Enrique García reported that for the Latin American development bank, the support given to the Uruguayan government is a priority: “The government of this country, a partner of CAF, has pledged to guarantee universal access and optimize the quality of drinking water supply and sanitation services throughout the nation, thus improving competitiveness, as well as social and environmental conditions of the country.”

With the implementation of the planned investments, the nation aims to raise coverage of sewerage service from 53% to 95%, benefiting a population—projected for the year 2035—of 417,000.

The total estimated cost of the project is USD 83.2 million, with the CAF loan representing 48% of the total, while 52% will be covered with OSE funds.

The city of Punta del Este is the largest tourist destination in Uruguay, some 135 kilometers east of Montevideo, and stretches along a coastal strip of some 70 kilometers that includes the capital of Maldonado.

These works seek to adapt the sanitary infrastructure to the growing demand of this important tourist area and improve the environmental quality for residents of Maldonado and other neighboring towns.