The Brazilian government will spend EUR 1,3 billion to bring running water and other basic services to Rio de Janeiro slums to counter drug gangs that control many of the poor areas, says President Luiz Inacio Lula da Silva. Over a million people in the city of 11 million live in shantytowns, or favelas, which often lack basic services.

Lula signed an agreement with Rio de Janeiro state government to spend more than BRL 3.5 billion (EUR 1,3 billion) in running water, sewage and other facilities in favelas and other poor areas, among them the sprawling Alemao shanty-town complex, the scene of last week's bloodshed where clashes between police and gangsters killed 19 people.

The federal government will provide BRL 2.15 billion reais (EUR 824 million) from its coffers and another BLR 1 billion (EUR 383 million) in financing. The projects should benefit around 2 million families in Rio de Janeiro state. The state and municipalities will contribute anther 640 million reais (EUR 245 million).

Source: Reuters / Alertnet, 2 Jul 2007