WASHINGTON, October 5, 2023 – The World Bank Board of Directors today approved a project aimed at financing affordable and resilient housing in Ecuador for low-income families, improving urban infrastructure and services in selected areas, and strengthening the government’s capacity to implement and scale affordable housing and urban development policies.
The US$100 million project will finance new housing, building on existing government programs, and promote private sector construction of sustainable and universally accessible housing in urban and periurban areas.
The project, which is expected to benefit approximately 20,000 families, will give priority to households headed by women, as well as to persons with severe and very severe disabilities to help them access formal housing and upgraded neighborhood infrastructure.
Minister of Housing, Gabriela Aguilera, noted that “For the first time in Ecuador, the World Bank and MIDUVI joined forces to design a housing finance operation that will not only address the quantitative housing deficit but will go further to tackle the qualitative housing deficit and ensure comprehensive neighborhood upgrading. This means recognizing the importance of public spaces to make them more inclusive and safer and ensure that cities are on the path to sustainable urban development. And for the first time as well, Ecuador now has a contingency component for emergencies, which will be activated if El Niño occurs.”
Under the project, activities such as promotion of the use of low-carbon materials and energy-efficient technologies will be implemented to improve urban infrastructure and reduce vulnerability to floods, landslides, and erosion. The project will also work with communities to foster an inclusive planning process.
In addition, the project includes a contingency emergency response component that allows for the reallocation of funds for housing infrastructure damaged during a disaster.
“Decent housing is an aspiration and a right. Investment in housing and urban upgrading is key to building more inclusive, sustainable, and resilient cities. We are supporting Ecuador’s efforts to reduce inequality gaps and promote access to quality housing and better services for all,” said Issam Abousleiman, World Bank Country Director for Bolivia, Chile, Ecuador, and Peru.
This is a variable rate loan, with a repayment period of 16 years and 6 months and a 6-year grace period.
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