Wolrd Bank approves $100 million loan for El Salvador

The World Bank has approved a $100 million loan for El Salvador to help the Central American country improve the reliability and quality of its water supplies as well as prepare for natural disasters.

According to a statement by the World Bank, the loan will mature in 25 years and include a five-year grace period.

“It’s key for our country to promote the rational use of water so as not to compromise or jeopardize its availability for future generations,” said Finance Minister Alejandro Zelaya.

The financing assistance aims to modernize the country’s water and sewage services, and cover the metropolitan area of the capital that receives water from the Torogoz treatment plant.

The plant supplies water to some 40% of the people living in San Salvador’s metro area, the lender said.

The loan is also set to create an immediate response plan for a natural or human-caused emergency.

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“We consider this vitally important to work for Salvadoran families exposed to droughts, storms and floods who suffer continuously from the interruption of their water services,” said Carine Clert, the World Bank’s manager for El Salvador and Costa Rica.

Clert stressed that improving water infrastructure will particularly benefit women in the country, who are disproportionately caregivers and heads of households.

The announcement comes shortly after the World Bank announced another loan to Panama, intended to support the country’s sustainable growth and climate resilience.

Zainab Sa’id