CABEI approves US $425 million for a landmark water supply project in Costa Rica
With this outstanding investment, the project seeks to promote economic and social growth in the Chorotega region of the Guanacaste province.
Tegucigalpa, July 25, 2018.- The Central American Bank for Economic Integration (CABEI) approved a loan of US $425 million dollars to the Republic of Costa Rica for the partial financing of the project entitled Water Supply System for the Middle Tempisque River Basin and Coastal Communities (PAACUME).
The climatic of the Chorotega region, marked by a water deficit and the effects of climate change, makes the supply of water for different uses a limiting factor for its socio-economic development. The project includes the construction of hydraulic, civil and mechanical structures to achieve the threefold purpose of providing water for irrigation, water for human consumption, and for future energy generation.
The Executive Vice President of CABEI, Alejandro Rodríguez, pointed out: "With this historic financing from CABEI for water supply in Costa Rica, economic and social growth will be promoted by generating 20,573 permanent jobs, benefiting a population of 700,000 inhabitants of whom 50% are women".
Through this financing, CABEI contributes to the Millennium Development Goals, specifically those that have an impact on eradicating hunger, achieving food security and improving nutrition, sustainable agriculture, employment generation and production. It is planned to benefit the inflow of agricultural irrigation; water for human consumption; irrigation for the tourism sector in coastal areas; increased productivity and new businesses for agricultural producers, as well as beneficiaries of water for human consumption, and irrigation for green areas in tourism companies.
Mr. Rodríguez added that "the project is framed within the transversal axis of environmental sustainability and the focus area of rural development and the environment of CABEI's 2015-2019 Institutional Strategy "Integrating Sustainable Development and Competitiveness".
Specifically, PAACUME intends to build the Rio Piedras Reservoir to guarantee the water supply to the area of influence, both in summer and winter. With this project, 18,800 hectares located in the cantons of Carrillo, Santa Cruz and Nicoya will be irrigated to meet the demand for drinking water for approximately 500,000 people.
In addition to the population who will be supplied water for human consumption, it is estimated that some 200,000 inhabitants of the region will be benefiting indirectly, in the first instance from the increase in productive activity, as well as those generated indirectly, such as the transportation of products and inputs, totaling more than 700,746 beneficiaries of this project.
