US$200 million to improve potable water and basic sanitation services in Ecuador

(Caracas, July 9, 2007).- The Andean Development Corporation approved a US$200 million loan for the Republic of Ecuador to partially finance the Environmental Sanitation for Community Development Program (Promadec), to be executed nationwide by Banco del Estado (BEDE), in coordination with the Ministry of Urban Development and Housing (MIDUVI).

CAF President & CEO Enrique García explained that "This contribution aims to improve the quality of life and health conditions of the poorest marginal rural and urban populations in the country through sustained expansion of coverage, quality and efficiency of the basic services of potable water, sewerage, and collection and disposal of solid waste." Promadec will benefit around 1,800,000 people. "This is part of the CAF strategy to combat poverty and favor Latin American development," he added.

The Program will also improve the planning, execution and follow-up of sectoral policies, as well as the managerial capacity and independence of the service operating agencies and companies, by means of technical assistance programs, fostering fiscal responsibility in the municipalities, and strengthening a unified and ordered system of channeling public funds to sectional bodies.

The total cost of Promadec is US$240 million, of which the CAF loan covers 83%, and the remaining 17% will be financed by contributions from the municipalities. The funds approved will be used to finance pre-investment, investment in physical infrastructure, and institutional strengthening programs for modernization and improvement of management in the municipalities and the operating agencies that provide potable water and sanitation services.