World Bank to provide US$250 MM for modernization of potable water services in Dominican Republic

Washington, DC, USA.
The World Bank today approved a US$250 million loan to support the government of the Dominican Republic’s efforts to improve access to safely managed water and sanitation services and strengthen the capacity and efficiency of water and sanitation institutions.

This operation will benefit 34,700 households (approximately 121,000 people) with access to safe drinking water and 76,300 homes (about 276,000 people) with access to safe sanitation.

“Water sector reform is a priority for the Government of the Dominican Republic. Its objective is to transform and modernize the sector’s governance and institutional framework to increase the production of water for human consumption and achieve a more efficient and sustainable use of water resources. The World Bank’s technical and financial support is being and will be key to promoting institutional reforms and investments to modernize the country’s water sector for the benefit of all,” said Pavel Isa Contreras, Minister of Economy, Planning and Development (MEPyD) of the Dominican Republic.

The US$250 million operation consists of a US$225 million program to increase household climate resilience and provide potable water and sanitation services in the provinces of Monte Cristi, Valverde, Santiago Rodríguez, Santiago, and La Vega in the Yaque del Norte river basin. In addition, the Program will encourage the reduction of water losses, increased access to sanitation services, and improvements in energy efficiency.

The entities responsible for planning, budgeting, execution of activities, and compliance with the proposed goals will be the National Institute of Drinking Water and Sewerage (INAPA), the Santiago Aqueduct and Sewer Corporation (CORAASAN), and the La Vega Aqueduct and Sewer Corporation (CORAAVEGA), under the coordination and supervision of the Ministry of Economy, Planning and Development (MEPyD).

The operation also has a $25 million component to help address institutional reforms, capacity building, and investments in water information systems and dam safety instrumentation to adapt to climate shocks effectively. This component will support program supervision, coordination, monitoring, and evaluation, including verification and auditing of results. It will be executed by the Ministry of Economy, Planning and Development (MEPyD) and the National Institute of Water Resources (INDRHI).

The US$250 million loan is the first of two phases in a 10-year Multiphase Program Approach (MPA), the first of its kind in the Dominican Republic. The MPA will support the government’s transformative investments in the water sector to address sector challenges by (i) fostering reforms and (ii) improving the quality, resilience, and efficiency of water resources management and drinking water and sanitation to adapt to climate change.

“The Dominican Republic has high levels of access to drinking water and sanitation infrastructure; however, challenges persist in the quality of services. With this first phase of a 10-year programmatic approach, the World Bank reaffirms its long-term commitment to modernizing the drinking water and sanitation sector in the Dominican Republic, as well as improving water resources management and resilience to climate change,” said Alexandria Valerio, World Bank Resident Representative in the Dominican Republic.

Over ten years, the World Bank’s estimated US$500 million MPA Program financing package will leverage investment from the government, water, sanitation, hygiene providers, and other development partners. The MPA Program will aim to expand access for 300,000 people to safe water supply and 600,000 people to safely managed sanitation in the country over ten years.

The US$250 million loan for the Dominican Republic Water Sector Modernization Program has a final maturity date of 35 years, including a five-year grace period.