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Brazilian municipality of São Bernardo do Campo to improve sustainable urban mobility with loan from IDB

$125 million lending to fund infrastructure works, boost safety, promote public transport and cut greenhouse gas emissions

The Inter-American Development Bank (IDB) has approved a $125 million loan to improve sustainable urban mobility in São Bernardo do Campo, a municipality of 800,000-plus inhabitants in the southern outskirts of São Paulo, Brazil. The loan, the second for the program, will finance infrastructure works, promote the use of public transportation, boost traffic safety and support moves to reduce transport-related greenhouse gas emissions. 

Under the five-year program, it will be adopted a new operating model, with the construction of 45 km of dedicated lanes for buses as well as bus terminals and stations and a bicycle path and bicycle route. Urban elements such as sidewalks for pedestrians, universal accessibility, lighting and landscaping will also be incorporated. Regarding to road safety, horizontal en vertical traffic lights will be adopted. 

In order to strengthen the execution of the project 40 Department of Environmental Management officials will be trained in supervision, licensing, and environmental education. With better management and greater fluidity in traffic, it’s anticipated that vehicular source greenhouse gas emission will be reduced. 

According to IDB project team leader, Dalve Soria, "the program will bring incalculable benefits to both the population using public transport, by improving the service and management of urban transportation; and mainly, to the entire population of the city of São Bernardo Field from the urban regeneration of areas of direct intervention Program. " 

These and other improvements are expected to reduce the annual accident rate from 208 per 10,000 vehicles to 193 per 10,000; The travel time for public transportation users should decrease by 25 percent; with an increase in the average speed for the system by about the same rate during peak hours. As a result, a 3.5 percent surge in the number of passengers on working days is expected. 

The loan is for a 25-year term, with a 5-1/2 year grace period, and carries a variable interest rate based on LIBOR. The São Bernardo do Campo municipality will provide an additional $125 million in local counterpart funds.