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inancing

ooperation

almost five years ago and during this time a model of work and

shared effort has been built which has borne fruit throughout the

region.

From the start, the goal of the initiative’s leaders was to create an

instrument that was more than just a transfer of funds. On one hand,

work has been done with the Fund recipient countries to identify

actions that guarantee a greater incidence in rural and periurban

areas, both of which are defined by the Fund as priority areas of

intervention. On the other hand, mechanisms have been developed

to put into practice the cooperation of both institutions.

More specifically, Fund investments are integrated into a larger

dynamic which aims to have an impact at the sectoral level, focusing

both on policy and execution. The main target of these investments

is vulnerable populations in recipient countries, focusing on service

quality and sustainability. In addition, by leveraging resources and

coordinating with other funds, this initiative promotes comprehen-

sive programmes to boost sanitation and human rights.

At the beginning of 2010, the implementation of eight operations, along

with the preparation of 13 others funded by FECASALC and managed

by IDB, began. Coordination instruments were designed between the

different parties

in order to guarantee sustainable implementation of

the operations as well as harmonization in the intervention strategies.

Additionally, at the beginning of 2011, FECASALC started to

launch knowledge management products to complement the opera-

tions with innovative initiatives that promoted sustainable water and

sanitation systems in the region. Studies have been carried out to

measure the impact of actions on the beneficiary populations’ health;

the use of technology for a better knowledge of the rural systems state

has been promoted; methodologies have been defined to incorporate

gender perspective in the programmes in a more effective way; and

a strategy has been launched for the promotion of unconventional

sanitation models with the purpose of promoting sustain-

ability at a lower cost and, therefore, to a higher number

of beneficiaries.

By means of this model of cooperation between insti-

tutions which unites objectives, efforts, resources and

commitments, we have made it to 2013. Nowadays,

FECASALC has 20 operations running and one in prep-

aration. The portfolio managed by the bank is worth

more than US$1.112 million.

FECASALC is active in

12 countries in the region, and six studies have been

launched to promote knowledge management.

The challenges that we face are great and the effort made

since the Fund’s formation must be continued over the

coming years in order to finish the task jointly taken on

by IDB and AECID. However, this model of cooperation

between the bank and the Spanish Government can be

considered as a milestone for both institutions. The Fund

has placed the rural area back at the centre of policies in the

region, and this has required a mutual learning between

AECID and IDB as well as the countries involved, in order

to be able to approach those actions in a sustainable way.

It is worth mentioning that the existence of the Fund

has had an impact on the sector in the region and may

serve as a reference when looking for synergies between

development institutions that allow an increase in

impact, efficiency and sustainability of actions. Only by

uniting efforts between parties, sharing instruments and

methodologies, defining a joint dialogue with benefi-

ciary countries and integrating the communities in the

processes, can we expect actions that guarantee the

reduction of poverty in our region.

Bolivia

Despite the great efforts made in recent years,

Bolivia still has one of the lowest water and

sanitation coverage levels in the continent. In

order to address this, in 2008 the Government

developed the National Plan for Basic

Sanitation, which recognizes access to water

services as a universal right. The plan:

• holds the state responsible for the

provision of services

• provides that services will respond to

universality, accountability, accessibility,

continuity, quality and efficiency criteria as

well as to equitable and necessary tariffs

with social participation and control

• recognizes cultural and ancestral uses

• demands that the state and population

conserve and protect water resources

and use them in a sustainable way.

Both of the Fund’s operations in Bolivia are

conducted in this context.

Interventions

Two operations aim to provide drinking

water and sanitation services:

• Periurban Program 1

• a rural programme in small localities.

These are executed by the Ministry of

the Environment and Water, the National

Productivity and Social Investment

Fund, and the National Service for the

Sustainability of Basic Sanitation Services.

Milestones

Success in the scope, execution and

strategy followed in Periurban Program 1

has motivated IDB to finish preparing the

second stage with the aim of increasing the

scope of the interventions under the same

scheme of work. In addition to the Fund’s

periurban interventions, work is being

done with rural communities with less than

2,000 inhabitants and small localities

with a population of 2,000-10,000

people. These two operations enable the

interventions to focus on segments of the

population with lower levels of access.

Finally, a large investment in institutional

strengthening is being made with the

aim of providing support to the country’s

institutional framework in order to reinforce

the interventions of the national policy.

Funding (total US$140 m)

US$ (millions)

Per cent of total

Fund donation

100

IDB donation

Interventions in Bolivia focus on segments of the population

with lower levels of access to water and sanitation services

Image: IDB