Water Supply and Sanitation Program Central America II

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The FC project provides for measures to increase the ecological sustainability and economic efficiency of selected urban drinking water supply systems in Costa Rica. An integrated approach is to be followed in implementing the measures (taking technical, economic, ecological and institutional aspects into account). As part of the main measure, measures to develop an integrated and systematic water loss management system and to increase the energy efficiency of the water supply at the level of the national program executing agency are financed. By means of a factually and financially subordinate accompanying measure, the program executing agency at the supra-regional level and the national program executing agency are to be supported and advised on a point-by-point and temporary basis by specially qualified and experienced consultants. The borrower and program executing agency of the FC project at the regional level is the Central American Bank for Economic Integration (Banco Centroamericano de Integración Económica, BCIE). The Costa Rican water supplier AyA (Instituto Costarricense de Acueductos y Alcantarillado) acts as the program executing agency at the national level. The immediate target group of the FC measure is the population in the program areas (around 1.7 million people), who directly benefit from the measures to reduce water loss and improve energy efficiency (e.g. by increasing water pressure, avoiding supply outages, etc.). The indirect target group is the entire population supplied by AyA (around 2 million people). The total costs of the FC measure (including consulting services and implementation unit) estimated at the time of contract conclusion amount to around USD 199 million. Up to USD 125 million will be made available from FC funds as a low-interest loan to finance the investment measure. The investment measure will be supplemented by an accompanying measure with a financial contribution of EUR 2 million. Of this, a total of EUR 1.7 million will benefit AyA, and EUR 0.3 million will be used to finance support measures for BCIE.