The Inter-American Development Bank (IDB) today announced approval of a new operation under Procidades, a credit mechanism that finances integrated urban development programs for municipalities in Brazil in order to improve urban and social conditions and offer its residents a better quality of life.
The new loan is for Ponta Grossa, a municipality in the state of Paraná, with a population of 310,000. The IDB will finance US$7.5 million targeting the municipality’s main priorities, such as paving roads used by public buses in low-income neighborhoods, as well as expanding the basic education coverage and making improvements to school and daycare facilities. The program will also finance training and technological upgrades aimed at strengthening Ponta Grossa’s tax and administrative systems.
“This is the first time Ponta Grossa has worked with an international agency,” said IDB project leader Mario Durán. “This experience shows that the Bank is an important partner for medium-sized cities in Brazil, not only because of the financing but because our joint work and the technical assistance that is offered.”
With the Ponta Grossa financing, the Procidades credit mechanism has to date approved seven loans for a total of US$162.3 million, covering municipalities in the states of Rio de Janeiro, Espirito Santo, Paraná and Mato Grosso do Sul. The program is now moving forward with plans for a number of additional loans, with the most advanced being Curitiba and Maringá (Paraná), Catanduva (Sao Paulo), Duque de Caxias (Rio de Janeiro), Sao Luis (Maranhão), Aracajú (Sergipe) and Manaus (Amazonas). The main areas of integrated development supported by Procidades include improvements for impoverished neighborhoods, mobility and transportation, sanitation, social services, local economic development and institutional strengthening.