Press Release, February 2000
World Bank Approves Loan to Expand Water and Sanitation Services in Brazil

Contact Person:
Christopher Neal (202) 473 7229 (Washington)
Mauro Azeredo (55-61)-329-1059 (Brazil)

WASHINGTON, January 6, 2000 The World Bank today approved a $30 million loan to provide technical assistance supporting Brazil's initiative to improve water resources management and extend basic water and sanitation services to the urban poor. The Second Water and Sanitation Project for Low-Income Populations (PROSANEAR II) will broaden improvements completed in 1996, and which were supported by a previous loan.

"Overall, access to water and sanitation services in Brazil is steadily increasing and the services are improving," said Gobind Nankani, director of the World Bank's program in Brazil. "But many low-income people are without access to sewerage services, and some still don't have basic water service. This loan will help Brazil carry on its efforts in a key area for the poor."

About 90 percent of Brazilians have water services, but only 48 percent have sewerage. Water and sanitation facilities are most lacking in urban slums, or "favelas," where their absence is a key cause of disease and premature death, especially among children.

The first PROSANEAR loan, worth $100 million, developed low-cost, appropriate technologies and community-based approaches which led to water and sewerage being extended to more than one million poor residents in 15 cities between 1990 and 1996. This second loan will support training and awareness-raising for municipalities, slum communities and water companies to help them jointly design and implement water and sanitation projects, thereby expanding the impact of PROSANEAR. It will also support federal efforts to strengthen urban water policies to achieve universal access to water and sanitation.

The US$30.3 million, multi-currency, LIBOR-based loan will be disbursed in six tranches to 2005, carries a five-year grace period, and matures in 15 years.