Community Development / BdE II

completed

The planned Community Development Phase II project is integrated as a FC module into the development cooperation program State Modernization, Decentralization and Strengthening of Autonomous Decentralized Governments and builds on a similarly structured predecessor program (BMZ No. 2002 66759 Community Development/BdE). The project supports the Ecuadorian reform agenda in the governance area with the aim of enabling the population to be supplied with needs-based municipal infrastructure and services in the areas of water supply, sewage/waste disposal and urban mobility at reasonable prices. In addition to financing the municipal infrastructure, the municipalities will be fundamentally strengthened in the modernization of public financial management. The project is in line with the development priorities of the Ecuadorian state, which are set out in the Plan Nacional para el Buen Vivir 2009-2013 (Plan for a Good Life). By financing a credit line with the executing agency Banco del Estado (BdE), selected medium-sized municipalities in Ecuador will be provided with financial resources for infrastructure investments in the areas of water supply, sewage/waste disposal and urban mobility. In addition, the municipalities will be advised by BdE and GIZ on how to improve municipal management. The total cost of the program will be around EUR 15 million (EUR 10 million of which will be an FC loan). The executing agency BdE will provide around 50% of the FC loan as a national contribution and pass it on to the municipalities as a grant.