The project includes rehabilitation and expansion of capacity of three existing wastewater treatment plants and construction of a new one.
WD News: IDB Invest is providing a fully underwritten long-term local currency loan for up to 940 million BRL (approximately $200 million) to the Companhia de Saneamento Básico do Estado de São Paulo (SABESP), the largest water and sanitation firm in Latin America, helping 400,000 households benefit from a new sewage connection.
As part of the deal, half of the facility will be mobilised with the support of PROPARCO, which provides a BRL 470 million guarantee. This is the fourth phase of the Tietê River Clean-Up Program, aimed at improving access to sanitation in the region of São Paulo and contribute to gradual recovery of Tietê River, with the expansion of coverage of sewer systems and wastewater treatment.
The Tietê River’s source, located approximately 100 km from the city of São Paulo, receives effluents from residents and industries, causing serious sanitary and environmental issues. The river is highly polluted, and is characterised by the accumulation of nutriments such as phosphorus and nitrogen, toxic to aquatic biodiversity.
The project seeks to improve quality of life for the population while tackling the crosscutting issues of climate change and social inequality by improving wastewater services. More specifically, the project, which is classified 97.7% climate finance and aligned with the Paris Agreement, brings both climate change mitigation and adaptation co-benefits. It should represent a reduction of 145,514 t. CO2 eq. per year in greenhouse gas emissions.
Source & image courtesy: IDB Invest
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