The Inter-American Development Bank (IDB) has approved a US$60 million loan to boost the quality and coverage of drinking water and sanitation services for the inhabitants of the Zarumilla and Aguas Verdes districts in northern Peru.

The project involves the expansion and rehabilitation of the drinking water supply and sewerage system by financing new wells, sewers, impulse lines, reservoirs, distribution networks, pumping stations and household connections. The project includes the construction and rehabilitation of wastewater treatment plants and the creation of a sewer connection program. The project is to improve the quality of life of nearly 50,000 people. The loan will help implementer Agua Tumbes improve how it manages its operations.

The loan also aims to reduce water losses, improve technical and commercial information-gathering processes, optimize energy use, establish a well-protection and monitoring program, and strengthen human resources. The loan totaled almost US$78 million and will be disbursed over 6 years with a 15-year repayment period, a 7-year grace period and an interest rate based on the Secured Overnight Rate (SOFR).