📋 Tender Overview
STATUS: Proposed
MEMBER: Brazil
SECTOR: Multi-sector
E&S CATEGORY: FI
PROJECT NUMBER: 000975
FINANCING: PROPOSED FUNDING AMOUNT
USD300 million: FINANCING TYPE
Sovereign: TIMELINE
CONCEPT REVIEW
April 7, 2025
OBJECTIVE
To rebuild flood damaged infrastructure that enables trade with Asia, to restore livelihoods, and reduce the impacts of future climate events in the State of Rio Grande do Sul through a sovereign-backed on-lending program.
DESCRIPTION
The Program for Development and Resilience for the Southern Region (the Project) will support post-disaster recovery of trade-enabling infrastructure, in the sectors of water, flood management, urban, transport, social and other infrastructure. This infrastructure is critical for the support of the State’s export-based economy, as well as social and economic recovery of southern Brazil. The Project will be a sovereign-backed on-lending facility that will allow AIIB’s funding to reach smaller borrowers that AIIB would not normally work with directly. Best practices in enhancing climate resilience will be applied throughout the post-disaster reconstruction, with nature-based solutions incorporated wherever possible.
The Project comprises the following components:
A. Investment in projects that contribute to the economic recovery for Rio Grande do Sul and enable export-based trade (public and private);
B. Investment in Energy Transition and Sustainable Infrastructure, including renewable energy, Climate-positive investments, sustainable urban mobility, investments in trade-enabling infrastructure; and
C. Investment in climate resilience sub-projects in the public and private sectors.
ENVIRONMENTAL AND SOCIAL INFORMATION
Applicable Policy and Categorization: AIIB's Environmental and Social Policy (ESP), including Environmental and Social Standards (ESSs) and Environmental and Social Exclusion List (ESEL), applies to the Project. The Project is classified as Category FI because it involves the provision of funds through a Financial Institution (FI). Under this financing arrangement, AIIB will delegate to Regional Development Bank of the Extreme South (BRDE) the decision-making authority regarding the allocation of AIIB's funds to sub-projects that meet the agreed-upon conditions. This includes the selection, appraisal, approval, and monitoring of sub-projects, as well as the oversight of sub-borrowers and sub-projects, in compliance with AIIB's ESP requirements.
Environmental and Social Instruments: BRDE has an approved Social, Environmental, and Climate Responsibility Policy (link) which sets out principles and criteria to ensure that its investments align with best sustainability practices, and in addition, as a regional development bank in Brazil, BRDE has its own Environmental and Social Management System (ESMS). AIIB will assess BRDE’s ESMS and make recommendations for enhancement as needed, referencing AIIB’s ESP, ESSs, and ESEL, particularly for higher risk sub-projects c
