Washington, D.C., October 18, 2010—IFC, a member of the World Bank
Group, is providing a local-currency loan equivalent to $22 million to
Brazil’s Companhia Catarinense de Agua e Saneamento (CASAN) to improve
its operational efficiency, which will help optimize the use of water resources
in the southwestern state of Santa Catarina.
CASAN provides water and sanitation services to two-thirds of the municipalities
in Santa Catarina, through concessions and other arrangements. It serves
a population of 2.3 million and employs 2,300 people. IFC’s Brazilian-currency
loan will provide medium-term funding that will help the company improve
customer management and support programs to identify and control water
loss. Because of system efficiencies, between 23 percent and 40 percent
of the water produced in the state is lost, according to current estimates.
The water-loss identification and control programs include replacing or
installing water meters, automating system management, and updating the
customer database. CASAN plans to use these tools to reduce water
losses and improve energy use through more efficient pumping and water
treatment. They will also contribute to more accurate billing and better
targeting of subsidies to the poor.
Walmor Paulo de Luca, the President of CASAN, said: “IFC’s investment
helps us to consolidate efficiency improvement efforts that were launched
several years ago. Our clients deserve good quality service, and we can
deliver this by making sure that water is being used in an efficient way.”
Loy Pires, IFC Country Manager for Brazil said, “IFC's support to CASAN
will help improve water services to 2.3 million people in Santa Catarina,
by improving operational efficiencies in the water company and using an
innovative approach that combines private sector expertise with public
sector service commitment.
The IFC loan to CASAN is made under a subnational-finance business line,
jointly developed by IFC and the World Bank, that provides financing without
sovereign guarantees to well-run local governments and public enterprises
for essential infrastructure investments. Projects are identified
and appraised jointly by World Bank and IFC team members, and build upon
the World Bank’s longstanding engagement in infrastructure sectors.
In Brazil, IFC’s strategy in the water sector has been to help both public
and private utilities to expand service coverage, while conserving water
and energy resources. This is IFC’s second subnational finance project
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.
Established in 1971, CASAN operates water and sewage systems in the State
of Santa Catarina, located in the South of Brazil. The company provides
water and sewage services to a broad range of residential, commercial,
industrial and governmental customers in 203 of the 293 municipalities
in the state. For more information, visit http://www.casan.com.br.