CABEI and KfW finance project to reduce non-revenue water and improve water systems in Costa Rica
Funding of up to $ 156 million will be earmarked for the "Unaccounted Water Reduction and Energy Efficiency Project" (RANC-EE) in the Greater Metropolitan Area (GAM) and in rural areas.
San José, August 12, 2015. - The Central American Bank for Economic Integration (CABEI) will provide US$130 million to a project of the Costa Rican Institute of Aqueducts and Sewers (AyA); the project’s total cost is US$156 million, and its objective is to reduce non-revenue water use, improve competitiveness in water supply and contribute to the sustainability of water provision systems in the Greater Metropolitan Area and in peripheral systems.
The loan was formalized today in a ceremony held at Universidad Nacional de Costa Rica. The ceremony was attended by Costa Rican President, Mr. Luis Guillermo Solís Rivera; CABEI Director for Costa Rica, Mr. Alberto Cortés Ramos; and AyA Executive President, Mrs. Yamileth Astorga Espeleta; in addition to a number of Costa Rican government ministers.
It was also attended by the German Ambassador to Costa Rica, Mr. Ingo Winkelmann, and the Director of the German KfW Development Bank for Mexico, Costa Rica and Nicaragua, Mr. Pablo Obrador Álvarez.
In the framework of the project, KfW and CABEI will provide financing through a US$125 million concessional loan and US$2.2 million in non-reimbursable cooperation for the execution of consultancies, which are indispensable for achieving the project goal.
The Project “Reduction of Non-Revenue Water and Optimization of Energy Efficiency” consists of a set of investments in such relevant areas as macro and micro-metering; registry of clients and infrastructure; leak detection and repair; establishment of supply areas and operational sub-sectors (pressure control); pipe replacement; establishment of an integrated system of operational, commercial and administrative information; training; and establishment of permanent operational units to sustainably manage the reduction of non-revenue water use.
The project will benefit 15 cantons in the greater metropolitan area including: San Jose, Escazu, Desamparados, Aserrí, Mora, Goicochea, Santa Ana, Alajuelita, Vasquez de Coronado, Tibás, Moravia and Montes de Oca, which represents approximately 57 districts. It will also attend the cantons of Limon, Guacimo, San Isidro, El Pasito, San Ramon, Puntarenas and Liberia, covering 26 additional districts. In total, 22 cantons and 83 districts will be benefit from the project.
The project also has an energy efficiency component, which aims to optimize the principal pumping stations of project systems and at Nicoya in order to reduce the electricity bill and operational and maintenance costs at the stations.
