Brazil’s Parana state will boost its efficiency and productive competitiveness and develop its sustainable transportation infrastructure and regional integration with a US$235 million loan from the Inter-American Development Bank (IDB).
Parana’s Strategic Transportation Infrastructure and Logistics Program seeks to improve the quality of service and road safety of the state-run transportation logistics infrastructure, cutting operation costs, average travel time, and the number of critical safety points on road and railroad networks. It will also help develop planning tools such as master plans and studies to promote multimodal planning, and support organizational improvement efforts at the Secretary of State for Infrastructure and Logistics (SEIL).
Additionally, the program will boost up investments in infrastructure and logistics through interventions in segments of the state-run road and railway networks. These investments will improve access to primary roads as well as to railway and port facilities, strengthening multimodal transport solutions. As a result, it will reduce vehicle operation costs and make multimodal transportation easier to access and more economically attractive. State-run road and railway infrastructure improvements will also increase production chains efficiency by reducing logistics and transportation costs, enabling more industry competitiveness and enhancing Parana producers’ regional and global integration. In addition, 4.1% of the operation resources will be invested in climate change mitigation and adaptation activities.
The state of Parana is Brazil’s fifth largest economy, generating 6% of the national Gross Domestic Product. It also is the No. 4 exporting state, with a 7.5% share of the country’s total. It’s strategic geographical location makes it a hub for major flows of both intraregional and international trade, with key overland connections with the neighboring states of São Paulo, Mato Grosso do Sul and Santa Catarina, as well as with Argentina and Paraguay.
The IDB’s US$235 million credit line has a 25-year amortization term, a 5-year disbursement period, a 5-year grace period and a LIBOR-based interest rate.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
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