IBRD LOAN: US$50 million
TERMS: Grace Period=5 years; Maturity=17 years.
PROJECT DESCRIPTION: The main objective of the loan is to enhance the impact of the Federal Water Resources Management Project, better known as PROAGUA, in the country’s Northeast. PROAGUA - originally supported by a US$198 million World Bank loan approved on June 3, 1998 - is working to improve living standards and economic development in Brazil’s Northeast by decentralizing water resources management to river basin communities and local water user associations, as well as implementing and enforcing water user rights. The project seeks to optimize the storage, use, and delivery of water supplies within the selected areas containing high concentrations of poor, rural households.