IDB Lends $450m to Medellin

The IDB has approved a $450m loan that will city-owned Empresas Publicas de Medellin (EPM) complete a cleanup of the Medellin River. The loan is for a 25-year term, with a 6-year grace period, at an interest rate based on Libor. The IDB says the financing will help cover construction of a second wastewater treatment plan. When completed in 2012, it will treat about 85% of all wastewater flowing into the river. EPM built the first treatment plant with financing from a $130m IDB loan in 2001.