📋 Tender Overview
Country: Brazil
Status: Proposed
Area Of Operation Multiple Areas
Type Sovereign
Concept Approval Date
15 August 2024
Proposed Limit of NDB Financing
USD 500 million
Borrower
The Federative Republic of Brazil
Project Entity
The Ministry of Integration and Regional Development
Project ContextThe Northeast, North and Central-West macro-regions of Brazil (the Program Regions) together represent 83% of the Brazil’s territory and 44% of its population. These regions have lagged the South and Southeast macro-regions in terms of overall socio-economic development, as reflected in their lower than national average levels for the per capita income and Human Development Index indicators. Improving economic infrastructure in the Program Regions has been identified as a crucial pillar for promoting economic growth and sustainable development, and thereby reducing inter-regional inequalities. Lack of long-term financing is identified as one of the key factors constraining infrastructure investments in the country. Energy, transport and logistics are the top priority sectors, accounting for majority of the projected infrastructure investment requirement.
Project Description
The Program supports Government of Brazil’s program for mobilizing resources to narrow the financing gap for infrastructure in the Program Regions. NDB Loan proceeds will be used by the Government of Brazil as contribution to the resources of its Regional Development Funds, namely the Development Fund of the Northeast (FDNE), the Development Fund of the Amazon (FDA), and the Development Fund of the Central-West (FDCO). These funds will in turn be utilized for providing long-term loans to finance eligible infrastructure projects in the Program Regions, with focus on renewable energy and connectivity.
Project Objective
The Program objective is to promote sustainable socio-economic development in the Program Regions by way of reducing infrastructure bottlenecks and thereby enhancing economic competitiveness, boosting productivity, and attracting new investments. The Program will contribute to reducing regional inequalities in Brazil while also supporting achievement of Brazil’s targets for reduction of greenhouse gas emissions.
