The Inter-American Development Bank today announced the approval of a loan of 8,502 million yen (US$80 million) to support the second stage of an innovative urban transportation program in Curitiba, Brazil.
The project improves access, security and efficiency of the urban transportation system while reducing operating costs of the trunk lines of the Integrated Transportation Network.
The modernization of transportation in the metropolitan region of Curitiba began in 1962 in order to overcome the chaotic transportation conditions that characterized many of Latin America’s cities. The Integrated Transportation Network, created in 1980, established transfer terminals and a system that integrated both physical infrastructure and the fare structure so that several trips could be made with one ticket.
The IDB approved a $120 million loan in 1995 for the first stage of a major expansion and improvement in the system, which also received investments from the municipality and the private sector.
The second loan approved today by the Board of Executive Directors is designed to increase the system’s coverage, integrate areas of the city now separated by the axis of the old interstate highway BR116/476, reduce travel times on trunk lines and waiting time for passengers and increase traffic safety.
The old interstate highway that now divides the city will be transformed into an urban avenue that will constitute a new public transportation corridor for high-capacity buses. The new investments will result in a reduction in air pollution, construction of bicycle paths, and urban enhancements, including the creation of parks and green areas.
The total cost of the project is 14,170 million yen (US$133.4 million). The loan is for a 20-year term, at a variable interest rate, with a five-year grace period. Local counterpart funds total 5,668 million yen.
The program reflects the IDB strategy for Brazil to reduce poverty, increase competitiveness and improve the environment.