17 December 2012: The Latin American Development Bank (CAF) is lending US$100 million to Uruguay’s Sanitation Works Administration (OSE) to partially finance rehabilitation and improvement of drinking water and sanitation systems in that country.

The contract between CAF and OSE was signed in Montevideo, Uruguay, on 17 December 2012, by CAF’s representative in Uruguay, Gladis Genua, OSE President Milton Machado, and Economic and Finance Minister Fernando Lorenzo, representing the national government as guarantor of the loan.

According to Machado, on the drinking water side the loan will assist in: increasing the reservoir capacity and safety of the Paso Severino dam, considered critical for water storage; restoring three pumping stations; expanding and restoring the Paysandú city water treatment plant; building two new water treatment plants in the cities of Melo and Mercedes; and improving water treatment and distribution systems in several other cities. As for sanitation, the project will build six wastewater treatment plants in Colonia, Mercedes, Paysandú and Salto departments, restore and expand sewage networks in the cities of Colonia, Fray Bentos, Mercedes, Paysandú, Salto and San Gregorio de Polanco.

The loan also will support construction of regional laboratories to assist in water testing and analysis. [CAF Press Release]