Grant Aid to Ecuador (Non-project Grant Aid and General Project Grant Aid)

August 30, 2005

  1. The Government of Japan has decided to extend grant assistance totaling 1,181 million yen to the Government of the Republic of Ecuador, with a view to helping the country's efforts to improve its economic structure and water supply. Notes to this effect were exchanged on August 30 (Tue) (August 29 local time) in Quito, Ecuador, between Mr. Hiroyuki Hiramatsu, Japanese ambassador to Ecuador, and Mr. Marcelo Fernandez de Cordoba, Acting Foreign Minister of Ecuador.
    (1) Non-project grant aid 500 million yen
    (2) Project for Improvement of Water Supply System of Ibarra City (Phase I) 681 million yen
  2. Non-project grant aid

    Under President Lucio Gutierrez, Ecuador announced that it would keep the use of the US dollar and instead of using oil revenue for repaying the foreign debt, Ecuador would devote the revenue to the social sector and in so doing it would make efforts to improve its economic infrastructure.

    This non-project grant aid is intended to help Ecuador implement its structural adjustment project and will be used to import goods and materials necessary for further promotion of this project.

  3. Project for Improvement of Water Supply System of Ibarra City (Phase I)

    Based on its National Development Project, Ecuador formulated a Strategic Development Project focusing on the prefectural-level improvement of water supply. In 2003, on the basis of this Project, the Ibarra Water Supply Public Corporation drew up a Project for Improvement of Water Supply System of Ibarra City, and has been improving water supply facilities.

    Many of the water supply facilities in Ibarra City were constructed in the 1970's, and the asbestos cement conduit pipes are in extremely bad condition. The parts damaged by long use have become a factor not only in water leaks but also in accidental water pollution caused by seepage of polluted water, affecting the health of the Ibarra City residents. It is therefore an urgent task for the City to improve its water purification facilities by, for instance, replacing the old pipes.

    Under these circumstances, Ibarra City has drawn up a project to improve water supply facilities and the water supply situation for the residents, and has requested the Government of Japan to extend grant assistance necessary to procure equipment for constructing water purification facilities. It is expected that the implementation of the project will drastically reduce the water leakage ratio and secure a stable water supply.

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