IDB Invest, Proparco and BRK Maranhão to Expand Water and Sanitation Services in Brazil

- The project will provide clean water and improve basic sanitation to 370,000 residents in São José do Ribamar and Paço do Lumiar, benefitting public health and quality of life
IDB Invest led the financing for BRK Maranhão to expand access to water and sewage services in Brazil. With a total investment of R$ 825 million (approximately $135 million), the project combines advanced infrastructure development with operational improvements. IDB Invest and Proparco will contribute each R$ 225 million (approximately $37 million), with Proparco also providing a guarantee to IDB Invest, key for securing long-term local currency financing from other development financial institutions.
The investment aims to achieve 90% coverage of water supply and 70% coverage of wastewater services in the municipalities of São José do Ribamar and Paço do Lumiar, in the state of Maranhão. The project will provide clean water and improved sanitation services to approximately 370,000 people, enhancing public health, climate resilience, and social equity.
The project involves building and operating new infrastructure, including water pipelines, sewage treatment plants, sewers, and water reservoirs, while ensuring an average of 5,700 new water connections annually and expanding access to sewage treatment to an average of 6,600 families each year.
Additionally, the project includes a $14 million performance-based incentive (PBI) package, composed of a $4 million grant, a $5 million senior loan from the United Kingdom Sustainable Infrastructure Program (UK SIP), and a $5 million senior loan from the Canadian Net-Zero and Climate Resilience Accelerator.
The PBIs are contingent on achieving outcomes that mitigate greenhouse gas emissions by prioritizing the adoption of innovative technologies and strategies in wastewater treatment. In addition, the PBIs incentivize the inclusion of small and medium-sized enterprises (SMEs) that are led by women and Afro-descendants into the value chain for water and sanitation's projects in the region.
IDB Invest is also enhancing BRK Maranhão's environmental and social standards, in line with its Environmental and Social Sustainability Policy. Technical advisory services will identify supply chain opportunities for SMEs and assess the economic and health impacts of expanded water and sanitation access.
This partnership provides a scalable model for addressing critical water and sanitation challenges in underserved regions, while aligning with goals on climate resilience and social inclusion. The project is expected to contribute to several United Nations Sustainable Development Goals: Water and Sanitation (SDG 6), Decent Work and Economic Growth (SDG 8), Industry Innovation and Infrastructure (SDG 9), Climate Action (SDG 13), and Partnership for the Goals (SDG 17).
About IDB Invest
IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $21 billion in assets under management and over 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website idbinvest.org.
About BRK Ambiental Participações S.A
BRK is one of the largest private sanitation companies in Brazil, benefiting 16 million people in more than 100 municipalities. Present in all regions of the country, its units operate in water and wastewater services, through partnerships with state-owned and private companies, as well as state and municipal governments, complementing public investments to ensure universal water supply and wastewater treatment coverage in Brazil.
About Proparco
Proparco, a subsidiary of Agence Française de Développement Group, has been working with the private sector for over 45 years for a more just and sustainable world. With an international network of 25 local offices, Proparco works closely with its partners to build sustainable solutions in response to environmental and social challenges in Africa, the Middle East, Asia and Latin America. Proparco benefits from sector-based expertise as well as a wide range of financial solutions tailored to the different stages of business development, notably thanks to its Digital Africa subsidiary, and its Propulse technical assistance offering designed to scale up the impacts and performance of its partners. Proparco's new "Acting together for greater impact” Strategy 2023-2027 enables, strengthens and amplifies the different ways in which it works with its partners. To learn more: proparco.fr/en/strategy.
About UK SIP
The UK Sustainable Infrastructure Program (UK SIP) is funded from the UK’s International Climate Finance commitments to accelerate and enable sustainable development in the Latin America and the Caribbean region by supporting and catalyzing strategic private sector investments in sustainable low carbon infrastructure, adaptation and resilience-focused activities, and nature positive activities, while also aiming to contribute to gender equality and social inclusion outcomes.