Nov 12, 2012
Brazil´s Ceará to receive $66.5 million IDB loan to improve urban infrastructure and business environment
Multisectoral program to benefit cities in the state that act as regional development hubs
Brazil’s state of Ceará will receive a loan for $66.5 million from the Inter-American Development Bank (IDB) to enable cities that act as regional development hubs and with population above 20,000 people to improve their fiscal and institutional capacity, infrastructure, and business environment.
The multisectoral program will finance the construction of markets, community centers, roads and regional highways that provide access to major cities, as well as create systems for solid waste management, and promote urban renewal.
The program will also include the following:
- Preparing and updating urban development master plans, urban mobility and sanitation plans, modernization of tax administration, and capacity building for project formulation and investment management.
- Development plans for regions included in the program and preparation of sectoral studies; and support for simplifying the process of registering businesses.
- Improving transparency of municipal management, including Internet publication of updated information.
"The project was designed to take a holistic approach for addressing the main shortcomings of these important development hubs, and thereby contributing to the implementation of the state’s regional development policy," said IDB project team leader Huascar Eguino. Cities included in the program are Russas, Morada Nova, Limoeiro do Norte, Sobral, Forquilha, Massapê, Santana do Acaraú, Aracati, Jaguaribe, Jaguaruana, and Tabuleiro do Norte.
The IDB financing has a term of 20 years, a grace period of five years, and an interest rate based on LIBOR. Counterpart funding by the state totals $40.1 million. The program’s total cost is $106.6 million. It will be implemented by the state’s Secretariat of Cities.