NDB will provide a sovereign guaranteed loan to BRDE for on-lending to sustainable infrastructure projects to sub-borrowers in the Southern Region of Brazil. The sub-projects shall be selected by BRDE based on the following criteria: (i) the municipalities with a population preferably of less than 100,000 inhabitants that currently cannot directly access international financing due to regulatory restrictions; and (ii) state-owned enterprises and private sector companies, including their participation in concessions, public-private partnerships and other similar arrangements.

The Project will contribute to addressing scarcity and bottlenecks of infrastructure in key sectors in the Southern Region of Brazil, by filling the gap of infrastructure financing needs, particularly for sub-national governments with limited access to infrastructure financing.

The Project will be implemented over a period of five years. BRDE will be responsible for the overall Project monitoring and evaluation, including selection of sub-projects, collection of all information and supervision of sub-project performance. Sub-borrowers from the public and private sectors will be responsible for planning and implementing sub-projects and sharing implementation reports with BRDE.

The Project has been categorized as Category FI-B in line with the NDB’s Environmental and Social Framework. The Project’s main environmental and social impacts may include resettlement, alteration of habitats, pollutant emissions during construction, occupational and community health and safety. The negative impacts will be mitigated by adherence to country system requirements, BRDE’s E&S policies, and the implementation of an Environmental and Social Impact Management Plan.