External Support
The Inter-American Development Bank and the Andean Development Corporation are the main institutions that provide external support for water supply and sanitation in Venezuela. It was reported in 2004 that the lack in the availability of counterpart funds, which the government has to provide as part of their obligations to execute projects financed by external agencies, had paralyzed various large externally financed projects.
Interamerican Development Bank In 2010 the IDB provided a $50 million loan to promote the efficient use of drinking water by replacing pipes and installing meters for 80,000 households in at least five of the subsidiaries of Hidroven, including in the Ocumarito neighborhood in Caracas. Previously the IDB had attempted to support the reform of the water and sanitation sector through a decentralization loan of US$100 million that was approved in 1998 and had to be cancelled subsequently. The loan had aimed at introducing private sector participation, following the model of management contracts in the state of Monagas and Lara.
Andean Development Corporation The Andean Development Corporation (Corporación Andina de Fomento, CAF supported the water and sanitation sector through various loans, including five loans approved until 2003 for a total of US$292m, of which three for HIDROCAPITAL, the subsidiary of HIDROVEN serving Caracas. In 2004 CAF approved a US$15m loan to improve water and sanitation services in the Peninsula of La Guajira in Zulia state. In 2005 the CAF reassigned US$25m from a non-disbursing water and sanitation sector modernization and rehabilitation loan to environmental projects. At the beginning of 2008, the CAF announced that it has approved a water and sanitaton loan for the Venezuelan states of Amazonas, Anzoátegui, Aragua, Bolívar, Cojedes, Delta Amacuro, Sucre and Trujillo. The program is estimated to have a total cost of US$72.3m, of which CAF will finance US$50m, the remainder being financed by local counterpart funds. The program will be executed by Hidroven.
Canadian Development Agency The Canadian Development Agency CIDA finances a sanitation project for Caracas.
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