US$40 million to improve sanitary services in Punta del Este

(Special, January 21, 2010 ).- CAF approved funds of US$40 million for Administración de las Obras Sanitarias del Estado (OSE), with guarantee from the Republic of Uruguay, for execution of the project Treatment and Final Disposal of Effluents from the Maldonado System – Punta del Este .

The project aims to improve the quality of life and promote the social, economic and tourism development of Maldonado department by improving the sanitary end environmental conditions of the city and the Punta del Este tourism area.

CAF President & CEO Enrique García said, "the Uruguayan government has proposed guaranteeing universal access and improving the quality of provision of potable water and sanitation services, as well as modernizing and improving the efficiency of the public bodies responsible for management and operation of basic services, which we are supporting with this loan."

The city of Punta del Este – the country’s leading tourist destination and capital of Maldonado department – is formed by a 70-km long coastal strip located 135 km from Montevideo.

In the project area, the inadequate capacity of the sewerage system and sewage treatment infrastructure has a negative effect on the inhabitants of Maldonado, Punta del Este and neighboring localities, jeopardizing development of tourism in the area.

The project has a total estimated cost of US$83.2 million, of which the CAF loan represents 48% while the rest will be covered by funds from the OSE.