EIB supports Ecuador with $100 million for water, sanitation and waste management

The European Investment Bank (EIB), through EIB Global, the branch focused on development and international alliances, and the Development Bank of Ecuador (BDE) announced today in the framework of the CELAC-EU summit in Colombia a USD 100 million framework loan to finance priority projects in water supply, wastewater and waste management. The operation aims to modernize infrastructure, extend services to underserved populations and support climate change mitigation and adaptation through efficient water management systems and improved wastewater treatment. Complementary investments in waste treatment, including separative collection, will improve pollution prevention and control.

This operation is part of the successful first BDE framework loan for water and sanitation, which is estimated to benefit more than 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.

Modernisation of essential services for communities and climate resilience

The project will allow the BDE to implement schemes that improve the comprehensive treatment of this resource, benefiting an estimated population of around 1,000,000 people. By also addressing critical infrastructure gaps, it contributes to reducing environmental pollution, promoting public health and improving socio-economic development in the regions served.

“Water is essential for life. Improving sanitation and waste management processes will help communities in Ecuador have more well-being and take care of their health. And this project is an example of how the EIB contributes with its high social impact investments to improving the living conditions of millions of people around the world", said Nadia Calviño, President of the EIB.

“The first financing granted by the European Investment Bank to the Development Bank of Ecuador B.P. has supported 21 water and sanitation projects in 19 Decentralized Autonomous Governments (GADs) and, together with the new agreement that is being signed, it is expected to benefit approximately 1 million Ecuadorians. This agreement reinforces the EIB's trust in BDE B.P., the financial arm of the Ecuadorian State, channelling resources towards sustainable investments with social, environmental and territorial impact. We remain committed to strengthening alliances with international organisations and mobilising resources to drive Ecuador’s sustainable transformation, consolidating the BDE as a strategic partner for local and regional development”, said Carlos Rivera Bautista, General Manager of the Development Bank of Ecuador.

“By supporting Ecuador’s new water, sanitation and waste management initiative, the EIB is enabling vital services to reach communities with the greatest needs. This operation not only strengthens public health and climate resilience, but also promotes sustainable local development and green investment, demonstrating the EIB’s tangible impact on improving people’s lives in Latin America”, added EIB Vice-President Ioannis Tsakiris.

Strategic partnership between the EU and the EIB in Ecuador

This funding is part of the EU Global Gateway Investment Agenda in Ecuador, focusing on health and sanitation in areas with high prevalence of chronic child 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 that is not available to the EDB in capital markets, improving financial sustainability and seizing investment opportunities for the European private sector in water and sanitation technology and services.

Environmental, social and labour benefits

The funded schemes will reduce pollution of water bodies and soils, improve public health by increasing access to safe water and sanitation, and generate employment opportunities, especially during the construction phases. The project is expected to generate lasting benefits in climate adaptation and mitigation, contributing to Ecuador's national development and environmental goals.

About EIB Global

The European Investment Bank (EIB) is the long-term financing institution of the European Union, whose shareholders are its Member States. It finances investments that promote EU policy objectives.
EIB Global is the EIB Group's specialised branch dedicated to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. It aims to support around $115 billion (€100 billion) of investments by the end of 2027. EIB Global brings the EIB Group closer to  citizens, businesses and institutions through its offices around the world. Photographs of the EIB's headquarters for the media can be found here. 

The EIB in Latin America and the Caribbean

The European Investment Bank has been providing financial support to projects in Latin America and the Caribbean since 2022, facilitating long-term investments with favourable conditions and providing the necessary technical support to ensure that these projects achieve positive social, economic and environmental outcomes. Since the EIB began operations in Latin America in 1993 and the Caribbean in 1978, it has provided total financing of more than $20 billion (€17 billion) to support approximately 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, which aims to support robust projects that contribute to improving global and regional connectivity in the digitalisation, climate, transport, health, energy and education sectors. Investment in connectivity is one of the main activities of EIB Global, which takes as a reference the Bank's 65 years of experience in this field.