Program to help decrease inequality by integrating the Orla Noroeste district into the rest of the city

The Inter-American Development Bank has approved a $100 million loan for Brazil that will help boost living standards in the Vitória municipality by decreasing inequality in urban development, integrating the Orla Noroeste district into the rest of the city.

The total cost of the operation will be $125 million, of which the IDB will provide 80%. The rest will be financed locally. The main goals of the initiative are (i) to promote urban upgrading in the Orla Noroeste district using an integrated urban development approach that includes both smart city and climate change resilience interventions; and (ii) reduce violent crime through social inclusion activities for at-risk youth and the strengthening of the Municipal Guard. Both components of the plan will be carried out over a period of five years.

The project will focus on the 10 neediest neighborhoods of the Orla Noroeste district. It aims to achieve concrete results such as an increase in average property values in the districts being targeted, an expansion of green areas, landslide mitigation, institutional strengthening of government agencies, a reduction of the homicide rates for both males and females aged 15 to 24 años, and a decrease in theft.

Vitória has experienced uncontrolled urbanization that has affected the quality of basic public services and harmed environmentally sensitive areas. It is one of the fastest growing Brazilian cities and includes the country's largest urban mangrove forest, after Recife.

With this project the government will continue its efforts to provide improved infrastructure and basic services to low-income families and reduce the city's environmental vulnerability and levels of violence and crime.

IDB financing will be over 25 years, with a 5.5 year grace period and an interest rate pegged to the Libor.