The Inter-American Development Bank today approved of a $90 million loan to the state of Pernambuco, Brazil, to support a wide range of economic and social investments that will promote the sustainable development of the Zona da Mata.
The Zona da Mata comprises 43 municipalities and 1.21 million inhabitants in the eastern part of the state where the historically dominant sugar industry declined during the 1990s following the dismantling of subsidies.
The IDB will finance a program aimed at promoting economic and social advancement through investments in strengthening planning and municipal management. The process will include mechanisms for the participation by ordinary citizens and civil society in the development, planning and administration of projects.
Investments will also be made in infrastructure, agriculture, technology, microenterprise and environmental protection.
Resources will be channeled into activities that will directly benefit the low-income population, sectors such as drinking water, sanitation, education, training and health.
The program will be carried out by a special unit to be established in the state’s Secretaria de Planejamento e Desenvolvimento Social.*
The IDB loan is for a 25-year term, with a five-year grace period, at the currency pool variable annual interest rate, now 6.29 percent. Local counterpart funds total $60 million.