The Inter-American Development Bank ( IDB ) has approved a loan of US$307.8 million to finance a project aimed at improving and expanding access to urban wastewater treatment and stormwater drainage services in the city of Juliaca in the Puno region of southeastern Peru.

The project also seeks to enhance the operational and financial management of SedaJuliaca, a water and sanitation services provider, and the provincial municipality of San Román, which provides stormwater drainage services, to improve their performance and service quality.

This is the second operation under a conditional credit line for investment projects ( CCLIP ), approved by the board in December 2023, to support the provision of water, sanitation, and stormwater drainage services in the Peruvian city.

The project will directly benefit around 48,000 households through wastewater treatment and reduce the physical vulnerability of 13,400 households to flooding thanks to the stormwater drainage system. More than 140,000 households will benefit indirectly from the implementation of the wastewater treatment system.

The programme aligns with Conexión Sur, a regional initiative that seeks to improve connectivity and competitiveness in South America to promote sustainable growth.

The loan has a repayment term of 17 years, a grace period of 6.5 years, an interest rate based on the Secured Overnight Financing Rate, and a local counterpart of US$68.2 million.