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FINANCING COOPERATIONventions and support processes to governments in the region in theirinvestment challenges and new opportunities. 5The Water Fund: an example of cooperationIn 2007 a new stage of cooperation took place in the water and sanitationsector in Latin America and the Caribbean, between the SpanishGovernment and the IDB. The Spanish authorities created the US$1.5billion Cooperation Fund for Water and Sanitation (FCAS), an unprecedentedinitiative in this region. 6 The Spanish Government and IDBcombined both their financial and technical capacities in a strategic visionto enable the commitment of donors and recipient countriesto achieving the MDG.Therefore, on 22 October 2008, an agreementwas signed. Spain, through the Spanish Agency forInternational Cooperation for Development (AECID),and the IDB, through the Water and Sanitation Division,agreed to work jointly to solve the region’s challengeswith regard to water and sanitation by means of theFCAS in Latin America and the Caribbean (FECASALC)Fund managed by the IDB. The agreement was signedParaguayIn the Republic of Paraguay poverty affectsalmost 35.6 per cent of the population,with 19.4 per cent in a situation of extremepoverty. Poverty levels are related to lowlevels of education and development, andmostly to a lack of access to means ofproduction and basic social services suchas health, education and sanitation. Povertyaffects urban and rural areas equally, butextreme poverty mainly affects rural areas,where 24.4 per cent are in this situation.InterventionsTwo operations aim to increase access todrinking water and sanitation, focusing on:• rural and native communities with lessthan 2,000 inhabitants (all provincesexcept Neembucu and Misiones)• indigenous and poor peoples of theChaco and intermediate cities of theOriental region.They will be executed by the National Servicefor Environmental Sanitation and the Ministryof Public Works and Communications.MilestonesParaguay is one country where the Fund’scomprehensive approach is havingmore impact. In addition to the ruraland indigenous operation, a monitoringsystem for rural systems has beendeveloped through mobile telephony.One of the impact studies for measuringthe effect of water supply and sanitationin rural systems is being carried out.The other operation, conducted inintermediate cities, will be executedshortly. Here, the unconventionalsanitation model known as condominialwill be implemented, which has alloweda 25 per cent increase in the number ofbeneficiaries.Paraguay is one country where the Fund’s comprehensiveapproach is having more impactFunding (total US$148 m) US$ (millions) Per cent of totalFund donation 100 67IDB loan 32 21Local contribution 16 12Image: IDBHaitiThe level of access to drinking water andsanitation services in Haiti is among thelowest in Latin America and the Caribbean.In general terms, the situation of Haiti’swater and sanitation sector is alarming:only 8.5 per cent of households areconnected to a water distribution systemand sanitation services are practicallynon-existent, with only 30 per cent of thepopulation having access to them.InterventionsFour operations are aimed at providingdrinking water and sanitation services:• intervention in six intermediate cities:Saint-Marc, Port-De Paix, Les Cayes,Jacmel, Ouanaminthe and Cap-Haïtien• strengthening of service provision capacityof the Autonomous Metropolitan DrinkingWater Station of Port-au-Prince Central• improving the quality of life and sanitaryconditions of the rural communities inthe department of Artibonite• contributing to the Cholera Inter-SectorResponse Strategy adopted by theGovernment with a view to reducingmorbidity and mortality.These will be executed by the DirectionNationale de l’Eau Potable et del’Assainissement.MilestonesThe strategy for Haiti has been conceivedfrom a comprehensive point of view. Apartfrom working in rural areas, intermediatecities and Port-au-Prince, great effortsare being made towards reforming thesector. This reform was described in Haiti’sFramework Law on Drinking Water andSanitation, passed in 2009. It involvessector restructuring at national level, whichis being conducted with the support of thefund. In addition to bank-managed funds,AECID has an additional US$100 million.Haiti is one of the best examples of acomplementary and harmonized approachto resources, where the interventions ofboth IDB and AECID come together as one.Water and sanitation service provision capacity is beingstrengthened in Port-au-PrinceFunding (total US$119 m) US$ (millions) Per cent of totalFund donation 70 58IDB donation 49 42Image: IDB[ 157 ]