Uruguay secures US$130 million loan for Casupá dam construction

The construction of the Casupá dam represents a significant step forward for Uruguay's water security, a matter of paramount importance given the recent challenges faced during the 2023 water crisis. This US$130 million investment from CAF, the Development Bank of Latin America and the Caribbean, underscores the strategic vision of the current administration to bolster the nation's infrastructure and ensure a reliable water supply for the growing metropolitan area.

OSE President Pablo Ferreri highlighted that the dam will more than double the raw water reserves, from 80 million to 200 million cubic meters. This substantial increase is not just about quantity but also quality, promising to mitigate the impact of future droughts and improve the overall management of water resources in the Santa Lucía River basin. The project's integration into a broader set of initiatives demonstrates a comprehensive approach to water resilience.

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the future Casupá dam constitutes a strategic work for the water supply of the metropolitan area and is integrated into the set of projects promoted to strengthen the system's resilience to scenarios of water scarcity and accompany the future needs of the country.

From our perspective at El País, this project is more than just an infrastructure upgrade; it's a testament to Uruguay's commitment to self-sufficiency and proactive planning. While international coverage might focus on the financial aspects or the engineering feat, for Uruguayans, it directly addresses a recent, palpable anxiety about water availability. The successful securing of this loan and the commencement of construction signal a return to normalcy and a stronger future, a narrative that resonates deeply within the country.

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Of the 80 million cubic meters we have today, between Paso Severino and Canelón Grande, we will have 200 million cubic meters. And this is a huge leap in the quantity of fresh raw water, but also in the quality of the water. Uruguayans have a very recent experience with the 2023 water crisis, but we also had something of lesser intensity in the summer of 2026. When Casupá is ready, many of these problems will disappear.