IDB to Support Infrastructure Investments in Brazil’s North, Northeast, and Central-West Regions

WASHINGTON —  The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved a Global Credit Operation (GCR) of $500 million to expand investments in transport, logistics, water, and sanitation infrastructure in Brazil’s North, Northeast, and Central-West regions through the capitalization of the Regional Development Funds (RDFs), enabling them to finance private sector projects.

The operation will provide long-term financing through the Amazon Development Fund, the Northeast Development Fund, and the Central-West Development Fund, while also strengthening these funds’ management capacities as financial intermediaries. The operation will support the implementation of private projects, as well as public-private partnership (PPP) schemes, through sub-loans to private companies, including concessionaires operating under regulated contracts and owners of fully private projects.

An estimated 2 million people are expected to benefit from improved infrastructure and services, including 1.2 million people who will gain increased access to safe drinking water and sanitation, and approximately 670,000 residents living in the direct areas of influence of transport and logistics projects. Additional benefits will come from job creation generated by these investments.

Brazil’s North, Northeast, and Central-West regions face significant infrastructure and related service challenges, while the implementation of planned investments over the coming years is constrained by limited availability of long-term local currency financing and managerial challenges within the RDFs.

The operation, part of the IDB Group's South Connection program and aligned with the Bank’s regional Amazonia Forever program, will capitalize the three Development Funds through a long-term local currency credit line designed to mobilize private investment under concessional conditions.

The $500 million financing has a repayment term of 24.5 years, including a 6-year grace period, with an interest rate based on SOFR. Following approval by the IDB Board of Executive Directors, the program will proceed through the legal and administrative processes required in Brazil prior to the start of implementation.