The New Development Bank (NDB) and the Municipality of Aracaju are pleased to announce the signing of the Loan Agreement for the implementation of the Urban and Sustainable Infrastructure Program – Aracaju City of the Future Project. The Guarantee Agreement was signed by H.E. Mrs. Dilma Rousseff, NDB President, and Mr. Fernando Haddad, Minister of Finance of Brazil in Marrakesh, Morocco, solidifying the Bank’s commitment to enhance Brazil’s infrastructure and promote sustainable development.
The ceremony took place in the African country as Mrs. Dilma Rousseff and Mr. Fernando Haddad were participating in a meeting organized by the International Monetary Fund and the World Bank Group in Morocco, alongside other finance ministers and heads of multilateral development banks.
Under the Loan Agreement, the NDB will provide a loan of USD 84 million, guaranteed by the Federal Republic of Brazil, to the Municipality of Aracaju. This funding will support the implementation of the Urban and Sustainable Infrastructure Program, which encompasses several key initiatives, including the implementation of stormwater and sewage systems, restoration and construction of water canal networks, and improvement of pavement of five avenues in the city of Aracaju.
The Urban and Sustainable Infrastructure Program – Aracaju City of the Future Project aligns perfectly with the NDB’s mandate to support infrastructure and sustainable development projects. This Project falls under two crucial areas of operation outlined in the NDB’s General Strategy for 2022-2026, namely Water & Sanitation and Transport Infrastructure. Moreover, the project’s development results are primarily aligned with the United Nations’ Sustainable Development Goal 11, which focuses on creating sustainable cities and communities. Additionally, the program will contribute to other SDGs, including SDG 9 on Infrastructure and Industrialization and SDG 6 on Clean Water and Sanitation.
“We are making available to the City of Aracaju, led by Mayor Edvaldo Nogueira, 435 million reais aimed at improving the urban infrastructure of the capital of Sergipe, with a decisive impact on the environment and the living conditions of the population. I once again thank Minister Fernando Haddad, representing the Federal Government, who, by providing the loan guarantee, enables the financing by the NDB,” said Mrs. Dilma Rousseff.
“The ‘Aracaju, City of the Future’ Project modernizes the urban infrastructure of the capital of Sergipe and aims to improve the living conditions of the population by increasing basic sanitation coverage, road paving, flood area elimination, and improving accessibility and mobility throughout the city. It will also enhance urban mobility by improving the paving of five city avenues. In the sanitation sector, infrastructure and drainage works will be carried out. Flood prevention measures include widening and deepening of canals, dredging of the Poxim River, and the construction of a network of canals to drain rainwater from the expansion area, a rapidly growing area of the city that has recently been prone to severe flooding,” added NDB President.
“The NDB’s mission is to provide resources to help the people of the Northeast, the Brazilian people, and other regions of the global south to grow, achieve social inclusion, and conserve and protect the environment,” stressed Mrs. Dilma Rousseff.
Background information
The NDB was established in 2015 by Brazil, Russia, India, China, and South Africa to mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries. In 2021, NDB initiated membership expansion and admitted Bangladesh, Egypt, United Arab Emirates and Uruguay as its new member countries.