Regional Sustainable Infrastructure Development Program
Brazil
Approved
Multiple Areas
Quick Facts
More About This Project
The Northeast, North and Central-West macro-regions of Brazil (the Program Regions) together represent 83% of the Brazil’s territory and 44% of its population. These regions have lagged the South and Southeast macro-regions in terms of overall socio-economic development, as reflected in their lower than national average levels for the per capita income and Human Development Index indicators. Improving economic infrastructure in the Program Regions has been identified as a crucial pillar for promoting economic growth and sustainable development, and thereby reducing inter-regional inequalities. Lack of long-term financing is identified as one of the key factors constraining infrastructure investments in the country. Energy, transport and logistics are the top priority sectors, accounting for majority of the projected infrastructure investment requirement.
The Program supports Government of Brazil’s program for mobilizing resources to narrow the financing gap for infrastructure in the Program Regions. NDB Loan proceeds will be used by the Government of Brazil as contribution to the resources of its Regional Development Funds, namely the Development Fund of the Northeast (FDNE), the Development Fund of the Amazon (FDA), and the Development Fund of the Central-West (FDCO). These funds will in turn be utilized for providing long-term loans to finance eligible infrastructure projects in the Program Regions, with focus on renewable energy and connectivity.
The Program objective is to promote sustainable socio-economic development in the Program Regions by way of reducing infrastructure bottlenecks and thereby enhancing economic competitiveness, boosting productivity, and attracting new investments. The Program will contribute to reducing regional inequalities in Brazil while also supporting achievement of Brazil’s targets for reduction of greenhouse gas emissions.
Ministry of Integration and Regional Development will be responsible for overall management and supervision of the Program. The superintendencies of the Program Regions manage the respective Regional Development Funds and are responsible for overall governance and operations of these funds. The Program implementation period is five years.
The Program has been categorized as Category A in line with the NDB Environment and Social Framework (ESF). Based on the typical nature of energy and transport sector projects, potential key environmental and social (E&S) impacts include: (a) involuntary land acquisition and resettlement, (b) impacts on biodiversity sensitive areas, (c) impacts on indigenous peoples, (d) temporary disruption to local infrastructure during construction, (e) common environmental pollutions, (f) health and safety risks, (g) impacts on cultural heritages, and (h) other sector specific impacts.
E&S impacts and risks will be addressed and mitigated by: (a) adherence to the country systems and E&S management plans for projects, and (b) implementation of impact mitigation and capacity building measures stipulated in the E&S Impact Management Plan developed for the Program.
| Source of Fund | Amount | |
|
NDB
|
USD 500 million | |
| Other Sources | USD 500 million | |
| NDB | Borrower | Project Entity |
| Public Sector Department:
Jitesh Ketkar |
Ministry of Finance
Dr. Guilherme Barbosa Pelegrini |
Ministry of Integration and Regional Development
Eduardo Tavares |