The Project consists of the following components: (i) Recife Metropolitan Region (RMR): This component aims to enhance efficiency of water supply facilities and expand sewerage services in the municipalities of the RMR to cope with frequent water rationing, high water losses and insufficient network coverage. This will be done through construction of new and rehabilitation of existing infrastructure consisting of distribution networks (including water treatment and storage facilities), sewage collection and treatment systems, as well as associated monitoring and control equipment. (ii) Interior: This component will optimize operational efficiency and augment water supply network in the municipalities of the Interior, where low water availability and intermittent water supply is the most acute problem. Infrastructure intervention envisioned in this component includes development and rehabilitation of distribution networks (including water treatment and storage facilities), as well as associated monitoring and control systems.

The Project aims to enhance and expand water supply and sanitation services in 14 participating municipalities through construction of new and rehabilitation of existing infrastructure.

The Project will be enhancing water security and environmental protection of the State through the development of efficient and universal water supply and sanitation infrastructure. The Project contributes to the accomplishment of the targets set in the Federal Law No. 14,026/2020 and is expected to benefit over 2 million people. The Project is in line with NDB General Strategy: 2022-2026 that identifies water and sanitation as one of the Bank’s areas of operations. The Project seeks to contribute towards achieving United Nations Sustainable Development Goal 6, which aims at ensuring availability and sustainable management of water and sanitation for all.

The Project will be implemented by COMPESA, which will be responsible for implementing the Project, ensuring compliance with applicable regulations, and achieving its results. The Project will be implemented over a five-year period starting from 2023.

The Project has been classified as “Category B” in accordance with the NDB Environment and Social Framework (ESF). Its main environmental and social impacts and risks include permanent acquisition of public and private land potentially triggering physical displacement of persons, loss and disturbance of natural habitats, sludge generation and disposal from sewage treatment process, general pollution emissions and discharges during construction, and occupational health and safety risks. These impacts will be addressed and mitigated by adherence to country system requirements and management plans developed for the Project’s components and associated subcomponents, including the Environmental and Social Impact Management Plan (ESIMP). Upon fulfilment of the country system requirements and the ESIMP, the Project will be in compliance with the NDB ESF.