IDB loans US$ 600 million to Mexico

By Helen Wright12 January 2011

The Inter-American Development Bank (IDB) has loaned US$ 600 million to upgrade water and sanitation infrastructure in rural Mexican communities.

The IDB said US$ 250 million from the loan would be used to finance the third round of Mexico's water supply sustainability and sanitation services programme (known as PROSSAPYS).

This project is planned to expand piped water service to at least 630000 people and access to a sanitation system to 450000 people living in rural communities.

The total cost of the PROSSAPYS III program is US$ 500 million, of which Mexico will provide half in local counterpart funds.

Meanwhile, the remaining US$ 350 million tranche of the loan is set to finance infrastructure improvement projects for 20000 schools, together with an education programme teaching infrastructure maintenance and hygiene.

According to the IDB, around 5.5 million rural inhabitants in Mexico currently lack access to safe drinking water, while 9.8 million have no sewerage connection.

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