Brazil Secures IDB Loan to Improve Sanitation in Joinville

The Inter-American Development Bank (IDB) has approved a $128 million loan to improve environmental and public health conditions for residents of the Brazilian municipality of Joinville by increasing their access to sustainable water and sanitation services.

These enhanced water supply services will directly benefit approximately 605,000 people who are already connected to the system, plus an additional 80,000 new users. The program will build new reservoirs, stations, and drinking water treatment plants and expand existing wastewater collection and treatment systems in the municipality.

The investment strategy also aims to strengthen the business approach of the implementing agency, Companhia Águas de Joinville, helping it achieve its goals of sustainably providing universal access to water and sanitation services.

To ensure that changes are long-lasting, the program will help the company modernize and streamline operations, which will create more resilient systems, boost service quality and efficiency, and lead to greater financial benefits. It will also take specific steps to minimize water loss and optimize energy consumption.

Additionally, the company will receive support to accelerate its digital transformation, scale up innovative technological solutions, and better manage water resources through payments for environmental services. Finally, the program will include gender inclusion actions to improve the circumstances of women and families who use the company's services.

The operation is aligned with the IDB Group's country strategy for Brazil for 2019-2022, specifically the priority areas of improving the business climate and narrowing gaps in sustainable infrastructure to enhance competitiveness.

The program will cost a total $136 million, of which $128 million will be funded by the IDB and $8 million by local partners. The loan will be disbursed over the course of five years, with a 25-year repayment term, a 5.5-year grace period, and a SOFR-based interest rate.