Press Release, June 6, 2000
World Bank Approves Project to Expand and Upgrade Water and Sanitation Services in Uruguay

Contact Person:
Christopher Neal (202) 473-7229
Internet: Cneal1@worldbank.org
Lee Morrison (202) 458-8741
Internet: Lmorrison1@worldbank.org

WASHINGTON, June 6, 2000 - The World Bank today approved a US$27 million loan to help Uruguay expand water and sanitation services to reach more residents in the country's smaller towns and cities as well as improve the efficiency and sustainability of water and sanitation services.

"This loan will support efforts by Uruguay's Obras Sanitarias del Estado to increase its efficiency by introducing new management practices, decentralizing some services, and developing more effective water delivery strategies across the country," said Myrna Alexander, the World Bank's Country Director for Uruguay. "It will also provide financing to expand sanitation networks in several cities and small towns outside the capital of Montevideo."

To improve the efficiency of water and sanitation services, Uruguay's state-owned water utility, Obras Sanitarias del Estado (OSE), will set performance targets, increase competition, and expand sewerage systems. The loan will also finance upgrading and rehabilitation of existing water and sewage treatment plants.

This adaptable program loan, to be delivered in four phases over nine-and-a-half years, will finance the first phase of the OSE Modernization and Systems Rehabilitation program. OSE will complement the loan with its own $21-million investment. The LIBOR-based loan from the International Bank for Reconstruction and Development (IBRD) reaches maturity in 15 years, including a grace period of five years.