Brazilian utility Companhia de Saneamento de Minas Gerais (COPASA) has secured a €145m (S$218 million) loan from the European Investment Bank (EIB) to improve water infrastructure in the state of Minas Gerais.
COPASA will use the loan to improve its water supply, sanitation coverage and treatment both in terms of drinkable water and wastewater.
For instance, the loan will cover the construction of new wastewater treatment plants and the extension of water supplies.
The new water supply infrastructure will supply around 140,000 unconnected homes and the sanitation infrastructure will be connected to 300,000 households.
Up to 700 000 Brazilians are expected to benefit from improved sanitation infrastructure.
The loan is part of EIB’s External Lending Mandate for Latin America 2014-2020 and will contribute to reducing greenhouse emissions and to promoting climate resilience investments in the region.
EIB vice-president Emma Navarro, responsible for EIB operations in Latin America and the Bank’s climate action, said: “I am delighted to sign the first water and sanitation project financed by the EU bank in Brazil. Today’s deal will improve the quality of life of the people of Minas Gerais and highlights the EIB’s commitment to promoting environmentally sustainable projects that also create jobs. Moreover, this project is perfectly in line with the UN Sustainable Development Goals as it targets clean water and sanitation in developing regions.”