CAF Approves USD 176 Million to Prevent Flooding and Improve Urban Mobility in Brazil
The multilateral agency approved two loans for Brazil to partially finance the Baquirivu-Guaçu River Macro-Drainage and Flood Control Program of the Guarulhos Municipality, in the state of Sao Paulo, and the Sanitation and Urban Infrastructure Program of the Juazeiro do Norte Municipality, in the state of Ceará.
CAF—development bank of Latin America—approved two loans for Brazil for a combined USD 176 million. The first, a USD 96 million loan, will help improve drainage systems and flood control in the Baquirivu-Baquirivu-Guaçu river basin and promote road connectivity and urban mobility in the Guarulhos municipality. The second, for USD 80 million, will aim at reducing the risk of flooding, improving mobility, urban infrastructure and solid waste management in the Juazeiro do Norte municipality.
The program for the Guarulhos municipality will directly benefit the approximately 326,799 residents of the Bonsucesso, Taboão, São João, Presidente Dutra, Cecap, Lavras, Sadokim, Várzea do Palácio, and Aracilia neighborhoods, and some 1,379,182 people indirectly. CAF’s funding aims to finance mainly open pipeline works along the Baquirivu-Guaçu River, bridge expansion, construction of water reservoirs, parks, sports facilities, bicycle lanes, road corridors, among others.
The second loan, aimed at the Juazeiro do Norte Sanitation and Urban Infrastructure Program, includes urban drainage works, solid waste management, urban and social infrastructure and urban mobility, and is expected to benefit 134,000 residents directly, and 274,000 people indirectly in Juazeiro do Norte.
“These two loans aim to drive comprehensive economic development that includes all regions of Brazil and helps improve the provision of high-quality public services for the most vulnerable sectors. In this connection, improving infrastructure is crucial to prevent the effects of flooding, promote greater efficiency in mobility and ultimately help boost people’s quality of life,” said CAF executive president Luis Carranza.
Between 2009 and 2019, CAF approved 35 operations for 26 Brazilian municipalities for some USD 2.3 billion. Demand for financing for programs and projects in municipalities has been growing and has averaged 6 operations per year.
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