Brasília - The Inter-American Development Bank (IDB) and the Ministry of Cities signed a loan contract worth US$ 95.479 million to commence the Social Action Program in Sanitation (PASS-IDB). The funds should be disbursed over a period of four years and six months. The loan can be repaid in up to 25 years.

The purpose of the program is to improve and expand water supply and sewage services for low-income residents of cities with populations of 15-75 thousand and where the Human Development Index (HDI) is below the national average. "The program will cover about 120 Brazilian municipalities," informed the National Secretary of Environmental Sanitation, Abelardo de Oliveira Filho.

Since 2003 the federal government has earmarked US$ 1.48 billion (R$ 4.3 billion) for municipal and state governments and public utility companies to use on projects to construct and expand systems for water supply, sewage treatment, adequate garbage disposal, and drainage. The amount represents nearly double what was spent during the period 1995-2002, Oliveira Filho informed.

Agência Brasil
Reporter: Bianca Estrella
Translator: David Silberstein
09/09/2004