[China Co-Financing Fund] IDB administers $30 million loan from CHC for Ciudad de la Costa-West Area Sanitation Project

On February 13, 2015, the Inter-American Development Bank (IDB) signed a loan contract with the Government of Uruguay to finance the Ciudad de la Costa-West Area Sanitation Project, through which the IDB would provide $45 million from its ordinary capital (Loan 3258/OC-UR), and the People's Bank of China would provide $30 million (Loan 3259/CH-UR) via the China Co-Financing Fund for Latin America and the Caribbean (CHC). The IDB approved this loan financing on July 23, 2014, and it refers to this project as "UR-L1094 : Ciudad de la Costa-west area Sanitation Project". This loan carries a 25-year maturity and a 5-year grace period, including a 5-year disbursement period. The borrower is responsible for paying a LIBOR-based interest rate plus the applicable lending spread for the Bank's ordinary capital loans. The IDB lending spread in Semester 1 of 2015 was 0.85% with a 0.25% credit (commitment) fee. The objective of this project is to expand sanitation coverage in the western zone of Ciudad de la Costa, to improve quality and operational efficiency of water service in the west and central zone of Ciudad de la Costa, and to strengthen the capacity to operate and maintain the sanitation system. This project will improve sanitation and water delivery services to an estimated 20,000 people. The borrower and executing agency is the National Water Supply and Sanitation Administration (OSE). The IDB lists the project status as "Implementation". The China Co-Financing Fund was established on January 14, 2013 with a contribution of $2 billion by the People's Bank of China, and it is administered by the IDB. For more information, see umbrella Project ID#86526.

Additional details

1. AidData has estimated the all-in interest rate (1.108%) by adding 0.85% to average 3-month LIBOR in February 2015 (0.258%) 2. The IDB lending spread data are drawn from https://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=EZSHARE-1436601171-376. 3. All of the IADB contract and project documentation can be accessed via https://www.iadb.org/en/project/UR-L1094. 4. The CHC loan agreement can be accessed in its entirety via https://www.dropbox.com/s/ux8zd2gbi5cick1/Uruguay%202015%20China%20Co-Financing%20Fund%20for%20Latin%20America%20and%20the%20Caribbean%20%28CHC%29%20Loan%20for%20Proyecto%20de%20Saneamiento%20de%20la%20Ciudad%20de%20la%20Costa-Zona%20Oeste.pdf?dl=0.

Number of official sources

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