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IDB approves $100 million for expansion and upgrading of electricity distribution in state of Sao Paulo, Brazil

The Inter-American Development Bank today announced the approval of $100 million in financing for Bandeirante Energia S.A. to support the expansion and upgrading of the company’s electricity distribution system in the state of São Paulo, Brazil.

The resources will support the company’s three-year investment program that will modernize its electricity and business management support systems, enabling the company to provide electricity to new customers, including those in rural areas. Productivity will be increased, costs reduced and the quality and reliability of the network enhanced.

The project is expected to serve as a model demonstrating the effectiveness of private investment in the electricity sector and result in improvements in environmental, social, health and safety measures.

The total cost of the investment program is $155.7 million. IDB financing includes an “A-loan” of $38.9 million from ordinary capital and a syndicated loan, the “B loan,” of $61.1 million, consisting of resources from financial institutions with subscription of participation agreements with the IDB.

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