Contacts: In Brasilia – Denise Marinho (+55-61) 3329-1099 dmarinho@worldbank.org In Washington – Gabriela Aguilar (+1 202) 473-6768 gaguilar2@worldbank.org WASHINGTON, July 9, 2009 - The World Bank Board of Executive Directors approved today two loans for a total of US$ 270.65 million for two major projects aiming at improving transport conditions and controlling environmental and water pollution in the State of São Paulo. The São Paulo State Feeder Road Project (US$166.65 million) will improve the efficiency of the paved municipal road network; while the Integrated Water Management Project in Metropolitan São Paulo (US$ 104 million) will protect and maintain the quality of potable and other water sources. "The partnership between the State of São Paulo and the World Bank has been extremely important to the development of projects such as the São Paulo Feeder Road, which until 2010 will rehabilitate a total of 12,000 km of roads, facilitating the movement of people and the delivery of products from the interior of the State. said São Paulo Governor José Serra. He added “ Another important partnership is the São Paulo Mananciais Project, which aims to recover large water reservoirs serving the metropolitan region and organize the land occupation in the surrounding areas, thereby ensuring water supply in São Paulo, one of the largest urban areas in the world", Serra explained that "These international loans were possible thanks to a combination of virtuous factors: The State of São Paulo has its own economy in order and has a sound fiscal management which allows us to maintain investment despite a tax collection decline, as it is currently happening. Therefore, priority projects for job creation and maintenance and for social and economic development can continue quickly, improving the lives of all." He emphasized and informed that "The Government of the State of São Paulo is also working with the World Bank to finance trains and new lines for the subway and commuter rail network of the São Paulo Metropolitan Train Company (CPTM) as well as on other programs for water treatment and rational water use throughout the state, a total financing amount that exceeds the US$ 2.5 billion." São Paulo is the main engine of economic activity in Brazil so it is key to ensure that economic, social and sustainable growth is continues in spite of the global financial crisis. The Metropolitan Region of São Paulo (MRSP) alone, houses 19.3 million people in 39 municipalities covering 8,050 km2 and accounts for 17 percent of national GDP and 10 percent of the population. It serves as an example of the country’s diverse type of challenges in terms of providing quality urban services, land use distribution and management as well as mobility. "The Bank is proud to be able to contribute through these programs to tackle urgent challenges for São Paulo’s competitiveness and economic growth, and its social and environmental sustainability," said Makhtar Diop, World Bank Director for Brazil. The São Paulo State Feeder Road Project By supporting one of the Government major programs of investment, the Pro-Vicinais which aims at rehabilitating up to 12,000 km of municipal roads, the State Feeder Road Project will contribute to improve the overall efficiency of the road transport system in São Paulo, which, in turn, is expected to support a more sustainable growth in the State. It will contribute both to improve the conditions of the paved road network and will support institutional strengthening of the State administration to help further rationalize investment programs, environmental management, transport and logistics as well as road programs executions. "Transport and logistics are integral for the development of the economy of the State of São Paulo. The project will improve transport conditions for users state-wide, thereby improving accessibility, reducing logistic costs and enhancing traffic safety. It will also support activities which aim to strengthen the State administration and will contribute to sustainability in terms of the actions undertaken in transport, environment and planning activities,.” said Eric Lancelot, World Bank Acting Project Manager. Key points to be addressed by the project include: Feeder Road Rehabilitation – improving the condition of the existing paved feeder roads by undertaking a large program of rehabilitation of the infrastructure, built over the past 25 years, including pavement drainage and signalization. Institutional Strengthening - improving the State capacity in terms of investment planning, environmental management, logistic planning and management and investment programs in the road sector. Integrated Water Management in Metropolitan São Paulo APL Project With low per capita water availability, the city’s potable water supply is partly imported from neighboring river systems, which is contentious given the demands of other urban areas vying for the same water while half of the water supply comes from headwater-reservoir systems (‘mananciais’) within MRSP itself. The Integrated Water Management in Metropolitan São Paulo Project will tackle underlying causes of these problems. "Today, water scarcity and water pollution are critical issues facing more than 20 million people living in metropolitan São Paulo, issues that other urban areas throughout Brazil are increasingly exposed to as well. Through this new project, we share with the State the concern with regard to the use of water, which is an essential element to promote sustainable and inclusive economic growth and a better quality of life," said Makhtar Diop. The project’s goals will be achieved by: Environmental Protection and Recovery - to protect and recover natural habitats and environmentally sensitive and degraded areas in the sub-basins of MRSP with a view to improving environmental quality, by supporting programs such as reforestation, establishment of environmentally protected areas and rehabilitation and protection of reservoirs and water production systems. Integrated Water Supply and Sanitation – aimed at reversing the main factors that contribute to the pollution of the reservoirs and provides integrated water supply and sanitation services to the poor, by supporting wastewater management improvements; water supply system improvements and solid waste management improvements. Institutional Capacity Building- designed to support the executing agencies by strengthening their institutional capacity and promoting improved metropolitan management and coordination with regard to the key metropolitan challenges of water resources management. Urban Upgrading - aims to improve the standards and layouts of urban occupation in the targeted areas and to improve the quality of life of the residents of these areas, especially the low-income communities living in informal settlements, due to the urbanization of slums and squatter settlements. "The water challenges facing São Paulo are complex and the responses involve state and municipal players and the numerous sectors that need to be mobilized in order that the nexus of land-use, urban poverty and informality, local and trunk infrastructure, and water quality issues can be addressed simultaneously. We very much look forward to continuing our rich partnership with the state government and the state water utility, SABESP, during the implementation of the Mananciais Program." said Martin Gambrill, World Bank Project Manager. For more information on the "Integrated Water Management in Metropolitan São Paulo", please visit: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P006553 For more information on the "São Paulo Feeder Roads Project", please visit: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P106663 For more information on the World Bank and Brazil, please visit: http://www.worldbank.org/br |
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