The Diplomat
The Council of Ministers yesterday authorized the granting of a credit of up to $50 million (46 million euros) to the Dominican Republic to improve water and sanitation management in the country’s coastal and tourist localities.
The purpose of the loan is to co-finance, together with the Inter-American Development Bank (IDB), the Universal Sanitation Program in Coastal and Tourist Localities, whose main objective is to improve the environmental conditions and health of the inhabitants of these localities through access to sanitation services managed in a sustainable and safe manner. To this end, the program aims to increase the coverage of safely managed sanitation in coastal and tourist localities, improve the management of drinking water services in these localities and contribute to the strengthening of the Water and Sanitation operators and the National Institute of Drinking Water and Sewerage.
The amount of the loan, which is being granted from the Fund for the Promotion of Development (FONPRODE), is a maximum of US$50 million, with a 25-year repayment term. In addition, the Program will be co-financed by the IDB, which will provide US$80 million, and by the Korea Cofinancing Facility for Infrastructure Development in Latin America and the Caribbean (KIF), which will provide US$60 million.
According to the Government, the Dominican Republic is a Middle Income Partnership country, according to the V Master Plan for Spanish Cooperation. Furthermore, the country is located in a “strategically critical region and is the main recipient of bilateral Official Development Aid issued by Spain”.
This operation, the Executive continued, is aligned with the objectives of Spanish Cooperation and contributes directly to the achievement of the goals of the Sustainable Development Goals (SDGs), specifically SDG 6 (Clean water and sanitation, by improving the quality of water supply) and SDG 11 (Sustainable cities and communities, by improving infrastructure).
Last December, the Council of Ministers authorized a grant of two million euros to the Dominican Republic, also charged to FONPRODE, to assist in the management of the Universal Sanitation Program in Coastal and Tourist Localities.
