The Inter-American Development Bank (IDB) has approved a US$ 800 million (EUR 627 million) lending facility to Brazil for the Procidades Programme, which supports decentralised integrated municipal development projects. The projects will be part of a municipal development plan that will focus on sectors like water and sanitation, with high social and economic impact, mainly targeting low-income populations. Up to US$ 50 million (EUR 39 million) will be available for individual operations. Local currency may be used for financing.

“The rapid growth of cities during the last few decades has created a critical shortage of basic services and urban infrastructure with higher levels of poverty,” said IDB Team Leader Riccardo Rietti. “Due to the complexity of problems faced by the cities, comprehensive and integrated solutions are more effective than strictly sectoral approaches.”

The new lending facility is in line with the shift in demand for IDB resources from the federal and state levels to the municipalities. It will finance investments with a multisector approach, geographically targeted and coordinated in three modalities: neighbourhood improvements, urban rehabilitation and renewal and urban consolidation.

Contact: Riccardo Rietti, IDB Team Leader, IDB, USA, ricardor@iadb.org

Source: IDB, 11 Oct 2006

Tags: urban wash