IDB to Support Improvements to the Electricity System in Santa Catarina, Brazil

WASHINGTON – The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved financing for a Global Multiple Works Program (GOM) of $243 million aimed at improving the electricity system of the State of Santa Catarina, Brazil.

The operation will finance investments to enhance the reliability and resilience of the electricity distribution system and facilitate access to electricity services in rural areas.

The program will benefit 7.3 million people served by Centrais Elétricas de Santa Catarina – Distribuição S.A. (CELESC-D), the main state-controlled electricity distribution company, through a more resilient and reliable power service.

Among the beneficiaries are 11,743 rural households, which will gain access to distribution networks capable of supporting the development of agro-industrial activities. In addition, CELESC-D will benefit from strengthened institutional and technical capacities.

The planned investments will enhance the capacity, reliability, and operational modernization of CELESC-D’s distribution system and include the construction of new substations and the modernization of existing ones, the construction of new distribution lines, and the incorporation of operational and digital technologies, including energy storage systems, mobile substations, and smart meters.

The program will also finance equipment for a new integrated control and operations center, as well as operational and technical strengthening activities, including technical studies, works supervision, and the development of operational protocols for responding to extreme events.

The $243 million financing has a 24.5-year repayment term, a 6-year grace period, an interest rate based on SOFR, and a local counterpart contribution of $62.6 million. Following approval by the IDB Board of Executive Directors, the program will move forward through the legal and administrative processes required in Brazil before implementation begins.