City of Ourinhos in Brazil Will Modernize its Healthcare System with IDB Support

The Inter-American Development Bank (IDB) approved a loan of $40 million to improve the health system in Ourinhos, in Brazil. This is the fifth individual operation of a conditional line of credit for investment projects (CCLIP) 'ProSocial - Social Expenditure Modernization Program in Brazil', of $1.5 billion, approved by the IDB in 2020.

In Ourinhos, the loan will expand access and effectiveness to healthcare by expanding and improving the infrastructure and equipment of services. The initiative will finance the construction and equipment of new Basic Health Units (BHUs) and the reform, expansion, and equipment of the existing BHUs. In addition, the operation includes the construction of a Zoonosis Control Center; the construction and equipment of a center specialized in adolescent health, and the renovation and equipment of a center specialized in children's health, among others. 

Evidence shows that efficiency in healthcare spending can improve health outcomes. This operation will enhance the management capacity of the Municipal Health Secretariat through investments in the digital transformation of healthcare. This will expand the integration of services, improve management, and reduce system costs. The loan will also finance the construction of a logistics center for medicines and supplies to improve the supply chain's efficiency.

With nearly 115,000 inhabitants, the municipality of Ourinhos, in the State of São Paulo, is one of the main cities in the western region of the State. Estimates show that over 80% of its population relies solely on services provided by the Unified Health System.

The loan will directly benefit the population of Ourinhos and other municipalities in the same health region, especially the population that depends exclusively on the Unified Health System. The project will reach around 200,000 people, including 100,000 women, 50,000 Afro-Descendants, and 45,000 people with disabilities.

The IDB loan of $40 million has a disbursement period of 5 years, a grace period of 6 years, and an interest rate based on SOFR.

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