CABEI signs US$36 million contract to finance potable water works benefiting more than 76,000 Hondurans
The project will receive concessional financing from the Republic of Korea in the amount of US$25.2 million.
Tegucigalpa, July 7, 2021. – With the formalization of the "Project to expand the potable water supply system in the city of Gracias, Department of Lempira", signed this Wednesday between the Central American Bank for Economic Integration (CABEI) and the Government of the Republic of Honduras, more than 76,000 people will have access to this service in their homes and businesses.
The financing, which is for a total of US$36 million, of which US$25.2 million is provided by the Republic of Korea through resources administered by CABEI from the Korea Development Co-financing Facility for Central America of the Economic Development Cooperation Fund (EDCF), consists of the development of hydraulic infrastructure to increase the quality and quantity of water in the city's water supply system, which currently has an average interruption period of 168 hours per year, which will be reduced to zero hours.
"This initiative contributes to improving the health and quality of life of the City of Gracias residents by reducing the number of cases of waterborne diseases, promoting better conditions for the community's progress through job creation and environmental sustainability," commented CABEI Executive President Dr. Dante Mossi.
In accordance with CABEI's crosscutting environmental sustainability axis, the water expansion system in the city of Gracias includes the generation of renewable energy through the construction of a photovoltaic farm as an innovative solution to strengthen the project's environmental and economic sustainability, as well as climate change mitigation. The executing agency will be the Secretariat of Community Development, Water and Sanitation (SEDECOAS).
The agreement was signed by CABEI Executive President, Dr. Dante Mossi and the Secretary of State in the Office of Finance of Honduras, Mr. Luis Fernando Mata; and as a witness of honor, the President of the Republic, Mr. Juan Orlando Hernández; and as a special guest, the Mayor of the City of Gracias, Lempira, Mr. Javier Antonio Enamorado.
At the event, Mossi highlighted the participation of the Republic of Korea in this project, which will allow a mix of resources for the loan to have a term of up to 26 years, with a grace period of up to 8 years, at an indicative weighted annual rate of 0.91%.
He concluded by highlighting the growing participation of his extra-regional partner in CABEI financing through the new US$50 million credit agreement signed in May with Korea Eximbank, which plans to reinforce COVID-19 actions in the region through loans to the public sector for the purchase of medical devices, equipment to comply with the countries' quarantine guidelines and other medical supplies.