The Inter-American Development Bank (IDB) has approved a $307.8 million loan to improve and expand critical wastewater treatment and stormwater drainage systems in the city of Juliaca, located in Peru’s Puno region. The investment aims to strengthen urban infrastructure while enhancing resilience to flooding and environmental risks.
The project will also support better operational and financial management at SEDAJuliaca, the local water and sanitation provider, and the Provincial Municipality of San Román, which oversees stormwater drainage. Strengthening these institutions is expected to improve long-term service quality and system performance.
This initiative represents the second operation under a Conditional Credit Line for Investment Projects (CCLIP) approved in 2023 to advance water, sanitation, and drainage services in Juliaca.
Once implemented, the project will directly benefit 48,000 households through improved wastewater treatment and reduce flood vulnerability for 13,400 households via upgraded drainage infrastructure. In total, more than 140,000 households will indirectly benefit from the enhanced wastewater system.
The programme is aligned with Conexión Sur, a regional initiative promoting sustainable growth, connectivity, and competitiveness across South America.
The IDB loan features a 17-year repayment period, a 6.5-year grace period, and an interest rate tied to SOFR, complemented by a $68.2 million local counterpart contribution.