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In Brazil, one in five inhabitants does not have access to drinking water. In this context, AFD’s private sector financing arm, PROPARCO, is supporting the AEGEA project, which aims to improve the drinking water supply for 150,000 Brazilians.

Brazil is not spared from the ravages of climate change. In recent years, the country has been hit by several droughts, the frequency of which is likely to increase. Large cities were the first to experience water shortages. Today, 20% of Brazilians have no access to drinking water.

Yet the country benefits from huge water reserves, estimated at 20% of total world reserves. The valuable resource is an undeniable asset for Brazil’s economy. This can be seen by the fact that 70% of its electricity comes from hydropower dams. Its powerful agricultural industry also draws on this gift of nature.

The AEGEA project: Water management reviewed in four Brazilian cities

To reduce water-related inequalities in Brazil, PROPARCO has decided to support Aegea Saneamento. The country’s third largest private operator in the water and sanitation sector has over 5 million clients in 48 cities, in Brazil’s 10 States. In 2014, PROPARCO allocated a USD 40m loan (EUR 31.5m) to support the construction of drinking water collection, treatment and distribution facilities in four municipalities in the São Paulo region.

This financing for the AEGEA project aims to allow 150,000 Brazilians to benefit from improved access to drinking water. 260,000 people will benefit from wastewater collection and treatment services by 2020. A total of 7.4 million m³ of water will also be saved every year.