WASHINGTON, DC, March 24, 2023 – The World Bank today approved a US$250 million loan to support the efforts of the Government of the Dominican Republic to improve access to safely managed water and sanitation services (WSS) and improve the capacity and efficiency of WSS institutions. This operation will benefit 34,700 households (approximately 121.000 people) with access to a safe water supply and 76,300 households (around 276,000 people) with access to a safe sanitation system.
“Reform of the water sector is a priority for the Government of the Dominican Republic. Its goal is to transform and modernize the governance and institutional framework of the sector in order to increase the production of water for human consumption and to achieve a more efficient and sustainable use of water resources. The technical and financial support of the World Bank is currently and will be in the future, key to promoting institutional reforms and investments to modernize the water sector in the country, for the benefit of all”, said Pavel Isa Contreras, Minister of Economy, Planning and Development (MEPyD for its name in Spanish) of the Dominican Republic.”
The US$250 million operation consists of a US$225 million program to increase the climate resilience of households and the delivery of WSS services in the provinces of Monte Cristi, Valverde, Santiago Rodriguez, Santiago, and La Vega in the Yaque del Norte basin. The Program will incentivize reductions in water losses, increased access to sanitation services, and improvements in energy efficiency.
The National Water and Sewerage Institute (INAPA), the Santiago Water and Sewerage Corporation (CORAASAN), and the La Vega Water and Sewerage Corporation (CORAAVEGA) will be responsible for planning, budgeting, and implementing activities and for achieving targets, under the coordination and supervision of the Ministry of Economy, Planning, and Development (MEPyD).
The operation has a US$25 million component to help address institutional reforms, capacity building, and investments in water information systems and dam safety instrumentation to adapt effectively to climate shocks. Implemented by Minister of Economy, Planning and Development (MEPyD) and the National Institute for Hydraulic Resources (INDRHI), this component will provide support for supervision, coordination, monitoring and evaluation of the program, including verification and audits of the results.
The US$250 million loan is the first of two phases in a 10-year Multiphase Programmatic Approach (MPA), the first of its kind in the Dominican Republic. The MPA Program will support the government’s transformational investments in the water sector to address the sector’s challenges by i) fostering reforms, and (ii) improving quality, resiliency, and efficiency of WSS and water resource management to adapt to climate change.
“The Dominican Republic has high levels of access to water and sanitation infrastructure; but challenges remain in the quality of services. With the first phase of a 10-year programmatic approach, the World Bank is reaffirming its long-term commitment to the modernization of the water and sanitation sector in the Dominican Republic, as well as to improving management of water resources and resilience to climate change,” said Alexandria Valerio, World Bank Resident Representative in the Dominican Republic.
The World Bank MPA Program’s estimated financing envelope of US$500 million over ten years will leverage investment from government, WSS providers, and other development partners. The MPA Program will aim to expand access for 300,000 people to safe water supply and for 600,000 people to safely managed sanitation in the country over the 10-year period.
The US$250 million loan for the Dominican Republic Water Sector Modernization Program has a final maturity of 35 years, including a grace period of 5 years.
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