Contacts: In Brasília: Mauro Azeredo (+55-61) 3329-1059 mazeredo@worldbank.org In Washington: Gabriela Aguilar (+1 202) 473-6768 gaguilar2@worldbank.org WASHINGTON, July 18, 2008 – The World Bank approved yesterday a loan of US$ 35.6 million for the São Luis Enhancing Municipal Governance and Quality of Life Project. The project will directly promote better living conditions for the 230,000 inhabitants of São Luís’ Bacanga River Basin – one of the poorest and least-served areas of the city. “São Luís has a unique potential for economic growth through job creation and local production arrangements, especially in the industrial, port and tourism/cultural areas. This project will help the city become more competitive to the benefit of all, especially the poorest and most vulnerable population,” said John Briscoe, World Bank Director for Brazil. “It complements current municipal, state and federal actions in São Luís, including the Growth Acceleration Program (PAC).” São Luís is the capital of Maranhão, one of the poorest and least developed states in Brazil. The city hosts a historical center which was declared a UNESCO World Heritage Site, the deepest seaport in Brazil, and a significant and expanding industrial sector. However, unemployment is very high and there is widespread poverty. Migrants crowd peripheral city settlements, particularly in risk-prone areas of the Bacanga River Basin, vulnerable to flooding and marked by inadequate housing, water supply and sanitation. The basin houses over 230,000 of the municipality's residents, and more than 90% of the families earn less than two minimum salaries per month, the equivalent of less than US$ 20 per day per family. The three main action areas of the project are: · Local Economic Development and Municipal Management Strengthening - development of a strategy to improve local economic competitiveness for clusters including the tourism and cultural heritage preservation cluster, and the port-industrial cluster. The project will also support capacity building for job and income generation, technical assistance for procurement system enhancement, and technical assistance for project implementation. - Sanitation and Water Improvements – Support improvements to the storm water drainage, sewerage and water supply systems as well as develop and pilot solid waste management measures.
- Urban and Environmental Improvements – Support for informal area upgrading and resettlement, rehabilitation of the Bacanga Dam against periodic flooding, and municipal environmental management.
According to Ming Zhang, World Bank Task Manager for the project, "The Bank is proud to be a partner to São Luís in helping promote the city’s development with social inclusion. We would like to compliment the Municipal Government and especially the project team for their strong commitment and the priority given to the project." This loan, the first by the World Bank directly to the São Luis Municipality, represents the fourth phase of the Brazil Municipal Lending Program approved in April 2007, which includes seven other municipal projects throughout Brazil. This US$ 35.6 million fixed-spread loan from the International Bank for Reconstruction and Development (IBRD) to the Municipality of São Luís is guaranteed by the Federative Republic of Brazil and has a total term of 25 years, including 5 years of grace. Since 1965, the Bank has invested over US$ 550 million in the State of Maranhão, mostly for rural poverty reduction and community driven development projects. -###- For more information on the World Bank and Brazil, please visit: http://www.worldbank.org/br |
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