Bolivia will receive $40m to improve its drinking water, sanitation and wastewater treatment services in rural communities and small towns.
The Inter-American Development Bank will provide a loan of $20m and the Spanish Cooperation Fund for Water and Sanitation in Latin America and the Caribbean will offer a $20m grant to finance the scheme.
The programme involves the construction of new water and sanitation systems, with existing systems to be expanded and improved.
Training workshops and awareness campaigns will also be conducted to promote adequate use of water, control of wastewater and good hygiene among local communities.
On completion of the project, 11,200 households in rural Bolivia will be equipped with new water connections and individual sanitation solutions.
The projects will also provide water access to an additional 9,800 households and sewer connections to 9,600 homes.