Joint financing project "Municipal Environmental Protection I"

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Colombia's water resources are exposed to severe pollution and drinking water sources are becoming increasingly less reliable for suppliers and the population. In order to reduce pollution and the resulting health risks and to counteract the effects of climate change, investments in the urban water sector (drinking and wastewater infrastructure, water and flood protection, waste collection and disposal) are necessary. However, public or private water supply companies (WVU), waste companies, cities, regional environmental authorities or regional administrations that finance, provide and/or operate infrastructure (target group) often lack available financing and, in some cases, planning and operational capacity. The aim of the project is to improve the target group's access to loan financing for investments in urban water management in order to benefit from lower-interest and longer-term financing. The residents of the municipalities in which measures are developed or have an impact (e.g. downstream residents of a river) benefit indirectly. In view of severe liquidity bottlenecks during the COVID-19 pandemic, integrated joint financing worth EUR 100 million was able to be used to finance the projects. Up to EUR 15 million can be quickly provided to the target group in various parts of Colombia through financial intermediaries (usually commercial banks) in the form of cheap loans. Raw water sources were developed and water treatment structures, sewer networks and small sewage treatment plants were financed. In total, around 1.2 million residents benefit from the measures. FINDETER is supported by consulting services to identify weak points in the investment measures, develop concepts for their elimination and accompany the solutions initiated by the target groups.