IDB Invest finances Interagua to improve the water and sanitation system in Guayaquil, Ecuador
- The project will benefit more than one million residents including vulnerable communities
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, provides $70 million in financing to Interagua, the public water utility company of Guayaquil, Ecuador, to partially finance its five-year investment plan, which will allow the company to generate positive health-related benefits.
The financing will contribute to increasing access to drinking water and sanitation services with the goal of reaching 95 percent coverage by 2031. Additionally, the financing will help improve operational performance by reducing unbilled water to 46 percent by the end of the concession in 2031, generate between 150 and 900 new direct and indirect jobs, improve the quality of life of the population served, and contribute to environmental and health benefits. The operation also strengthens the company's financial capacity, allowing it to extend its debt profile.
The results will benefit more than one million residents in the southern districts of the city, where approximately 18 percent of the population is considered poor or vulnerable.
Since 2001, Interagua has operated the 30-year public concession administering the drinking water, wastewater and rainwater systems of Guayaquil and neighboring districts. The IDB Invest financing will help increase the efficiency and quality of services for its clients, particularly women, who are largely responsible for the management of the water supply, sanitation and healthcare of households.
Since Interagua began operating, the quality and scope of the network has improved significantly. In the same period, the poverty and mortality rate in Ecuador has decreased and life expectancy has increased, owing in part to the improvements made in water and sanitation services.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
International Water Services Guayaquil (Interagua) is a private company that provides public services of drinking water and basic sanitation in Guayaquil through a 30-year concession contract. The company has been operating the aqueduct and sewerage systems for 15 years. Its main shareholder, Veolia, is a world leader in the provision of water services.