The Inter-American Development Bank has approved a $300 million loan for Brazil to boost sustainable development in the country’s northeastern region by reducing infrastructure bottlenecks that affect strategic production chains.
The program aims to help Brazilian states identify and advance infrastructure projects that are relevant to the region's strategic production chains. These improvements are expected to result in more jobs, greater value added in the enhanced chains and development that is more sustainable and has lower carbon emissions.
The Productive Development Program for the Northeast Region (PRODEPRO), which has been approved by the IDB's Board of Executive Directors, will focus on strengthening states’ capacity to identify and design infrastructure projects and public-private partnerships (PPP), as well as provide long-term financing for key infrastructure investments to further this region’s development.
This program seeks to unlock the potential of strategic production chains in northeastern Brazil, benefiting the region’s approximately 55 million inhabitants. Eligible states in the northeast will receive support on designing and financing projects for prioritized production chains.
The program has two components. The first will focus on identifying and designing infrastructure projects, establishing a "Project Factory" that will assist states according to IDB standards for designing PPP and concession projects. This component will also involve support for eligible studies and projects, as well as assistance on technical capacity building, PPP project structuring and PPP units within state governments.
The second component centers on financing investments in infrastructure projects for priority production chains, such as transportation and logistics, variable renewable energies, infrastructure for business competitiveness and connectivity associated with production chains.
This $300 million loan to Brazil has a 25-year repayment term, a 5.5-year grace period and an interest rate based the Secured Overnight Financing Rate (SOFR). The executing agency of the Program will be Banco do Nordeste.
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Brazil and the IDB
Productive Development Program for the Northeast Region (PRODEPRO)