Contacts: In Brasilia: Mauro Azeredo (55-61) 329-1059 mazeredo@worldbank.org In Washington: Gabriela Aguilar (202) 473-6768 gaguilar2@worldbank.org WASHINGTON, January 15, 2008 – The World Bank Board of Executive Directors approved today a loan in the amount of up to US $18.9 million for a project to strengthen the capacity of the municipality of Pelotas, in Brazil’s Southern region, to provide selected infrastructure and employment opportunities for their population. This loan is the first of a US$ 66 million program which also supports the municipalities of Bagé, Pelotas, Rio Grande, Santa Maria and Uruguaiana in the State of Rio Grande do Sul. The program is comprised of individual loans to each of the five participating municipalities –the main economic centers of the southern portion of the State– with a common focus on strengthening municipal capacity to promote income generation and employment (thereby improving their competitiveness) and improving the quality of selected infrastructure services in a fiscally and environmentally sustainable manner. “All five municipalities contain important hub-cities and are economic drivers of the southern half of the state. The programmatic approach is enabling the municipalities to share approaches on innovative methods for promoting local economic development. ”, said John Briscoe, World Bank director for Brazil. The five municipalities will benefit from improved partnerships and enhanced capacity strengthening by working together on common development priorities that will improve access to services by the poor, will contribute to the municipal growth agenda and for environmental benefits. Each of the five projects will have the same three components: · Municipal Strengthening to finance activities related to improving municipal capacity to plan, appraise, finance, implement, monitor and evaluate infrastructure and local economic development investments. · Income and Employment Generation. This component will support municipal initiatives to generate income and employment opportunities, in addition to improving the quality of jobs in both in urban and rural businesses with instruments such as incentives to move into the formal sector, measures to facilitate access to micro credit, provision of appropriate commercial space, focused training and capacity enhancement activities. · Infrastructure Service Improvements. The objective of this component is to assist the municipalities improve their ability to provide infrastructure services in an efficient, environmentally and sustainable manner. The Pelotas loan will finance: a) The rehabilitation of pavement of existing urban streets and rural roads, including rehabilitation of small bridges, improvement to public transport services, bicycle paths, landscaping and long-term maintenance strategies. b) Water supply, sanitation and drainage systems in urban and rural areas. c) Productive infrastructure investments, including agro-business packing house, commercial center and technological park and support to business cluster formation and job training d) Improvements to municipal management processes, staff training and cadastre. The Fixed-Spread Loan from the International Bank for Reconstruction and Development (IBRD) for US$18.9 million has a 16 year maturity and a four year grace period. ### If you wish to learn more about the World Bank’s work in Brazil, please visit: www.worldbank.org/br For more information on the Rio Grande do Sul Integrated Municipal Infrastructure project please visit:http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P094199 |
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