The Inter-American Development Bank (IDB) approved a $248.3 million program to support the electrification of the public bus fleet of the Municipality of São Paulo, Brazil, contributing to the environmental sustainability of urban mobility in Latin America and the Caribbean’s largest city.
São Paulo has been implementing an ambitious fleet-electrification program, with 527 electric vehicles already on board and a goal of incorporating 2,200 buses powered by clean energy. The financing approved by the IDB's Board of Directors under the Loan Based on Results modality supports these efforts.
The direct beneficiaries of the program will be bus riders in São Paulo, including some 7 million public-service passengers in the city. The 11.5 million residents of the municipality and the 21.5 million São Paulo Metropolitan Region inhabitants will also benefit indirectly.
The funding will also support initiatives to improve the management of the city's bus system, under the responsibility of the SPTrans public-private partnership company. The program is expected to have a particularly positive impact on low-income citizens and women, who make up the majority of the city's public-transport passengers.
"It is a central part of the IDB's support strategy for Brazil to promote initiatives like this one, which allow us to advance environmental and social issues at the same time,” said Annette Killmer, IDB representative in Brazil. ”More efficient, punctual and cleaner public transportation is also an important vector for combating inequalities, and it is an honor to support the city of São Paulo in this agenda."
Currently, the city of São Paulo has a bus system with 12,000 vehicles, more than 1,300 lines, 4,600 km of routes, 31 transfer terminals, and 20,000 stops, which consumes 400 million-plus liters of diesel per year, according to SPTrans data.
The IDB loan has a 15-year amortization term, a 6-year grace period, and an interest rate based on SOFR. The operation will be launched after completion of the formalities required by Brazilian law and the signing of the contract.
About the IDB
The Inter-American Development Bank (IDB) is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the IDB works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise and knowledge, it promotes growth and well-being in 26 countries.
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