This article is published in association with European Investment Bank.
- This new $100 million loan builds on an initial $100 million EIB loan to BDE to expand water and sanitation services across Ecuador.
- The operation targets underserved communities and strengthens climate resilience.
- The two loans improve water and sanitation, with the second loan also expanding support for waste management.
- Together, both loans will benefit approximately 1 million people.
EIB Global, the international partnerships and development arm of the European Investment Bank (EIB), and Banco de Desarrollo del Ecuador (BDE) announced a $100 million framework loan to finance priority projects in water supply, wastewater and waste management at the EU-CELAC (Community of Latin American and Caribbean States) Summit in Colombia today. The operation aims to modernise infrastructure, extend services to underserved populations and support climate change mitigation and adaptation through efficient water systems and improved wastewater treatment. Further waste management investments, including separative collection, will enhance pollution prevention and control.
This operation builds on the successful first BDE water and sanitation framework loan, which is estimated to benefit over 450 000 people in several municipalities in the country. The new loan expands support for waste management, an area with urgent needs, especially in rural communities.
Modernising essential services for communities and climate resilience
The project will enable BDE to implement schemes that improve water quality, sanitation coverage and waste management, benefiting an estimated population of around 1 million people, including the final beneficiaries of the first EIB loan to BDE. By addressing critical gaps in infrastructure, the project contributes to reducing environmental pollution, promoting public health and enhancing socioeconomic development in the regions served.
“Water is essential for life. Improving sanitation processes and waste management will help communities in Ecuador achieve greater well-being and protect their health. And this project is an example of how the EIB, through its high-impact social investments, contributes to improving the living conditions of millions of people around the world,” said Nadia Calviño, President of the EIB.
“The first financing provided by the European Investment Bank to Banco de Desarrollo del Ecuador B.P. has supported 21 water and sanitation projects in 19 decentralised autonomous governments (GADs), and together with the new agreement being signed, is expected to benefit approximately 1 million Ecuadorians. This agreement reinforces the EIB’s confidence in BDE B.P., the financial arm of the Ecuadorian State, channelling resources into sustainable investments with social, environmental and territorial impact. We remain committed to strengthening partnerships with international organisations and mobilising resources that drive Ecuador’s sustainable transformation, consolidating BDE as a strategic partner for local and regional development,” said Chief Executive of the Banco de Desarrollo del Ecuador Carlos Rivera Bautista.
“Through its backing of the new water, sanitation and waste management initiative in Ecuador, the EIB is making it possible for vital services to be delivered to the communities with the greatest need. This operation not only strengthens public health and climate resilience, but also promotes sustainable local development and green investment, demonstrating EIB tangible impact in improving lives across Latin America,” said EIB Vice-President Ioannis Tsakiris.
Strategic EU and EIB partnership in Ecuador
This financing forms part of the EU Global Gateway Investment Agenda in Ecuador, targeting health and sanitation in areas with the highest prevalence of chronic childhood malnutrition, and is aligned with the Team Europe Initiative for a sustainable economy.
Through this initiative, the EIB is addressing market gaps by providing long-term financing unavailable to BDE in capital markets, enhancing financial sustainability and leveraging investment opportunities for the European private sector in water and sanitation technology and services.
Environmental, social and employment benefits
The financed schemes will reduce pollution of water bodies and soil, improve public health by increasing access to safe water and sanitation, and create employment opportunities, particularly during construction phases. The project is expected to generate lasting benefits in climate adaptation and mitigation, contributing to Ecuador’s national development and environmental objectives.
Background information
About EIB Global:
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that pursue EU policy objectives.
EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of the Global Gateway. It aims to support €100 billion of investment by the end of 2027. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world. Photos of EIB headquarters for media use are available here.
About EIB Global in Latin America:
EIB Global has been providing economic support for projects in Latin America and the Caribbean since 2022, facilitating long-term investment with favourable conditions and providing the technical support needed to ensure that these projects deliver positive social, economic and environmental results. Since the EIB began operating in Latin America and the Caribbean in 1978, it has provided total financing of more than €17 billion to support around 350 projects in 30 countries in the region.
About the Global Gateway Investment Agenda:
EIB Global is a key partner in the implementation of the European Union’s Global Gateway Investment Agenda, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank’s 65 years of experience in this domain.
Banco de Desarrollo del Ecuador B.P.
The Banco de Desarrollo del Ecuador B.P. (BDE B.P.) is the financial institution of the Ecuadorian State responsible for financing and promoting investment in infrastructure and the provision of public services, contributing to the country’s territorial and social development. Its work is carried out in alignment with public policies, promoting a significant improvement in the quality of public works execution and strengthening the technical capacities of its clients through a high-performance team.
As part of its vision, BDE positions itself as a key player in territorial development, continuously improving the quality of life of Ecuadorians and promoting their well-being through the financing of infrastructure, public services and technical assistance, generating sustainable social, environmental and economic impact across the country.
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