SPONSORS

SPONSORS

State of São Paulo to receive $480 million to upgrade highways

 

OTHER NEWS AFFECTING PROJECTS & PM

An IDB loan will finance the rehabilitation and expansion of key stretches of the road network in a state that generates a third of Brazil’s GDP

12 September 2014 – The Inter-American Development Bank (IDB) has announced the approval of a $480 million loan earmarked for the state of São Paulo’s highway investment program.

With 41 million people, São Paulo is Brazil’s most populated state. It generates a third of the country’s economic output. The state is home not only to the country’s largest city, São Paulo, but also to its biggest port, Santos, which handles a fourth of Brazilian exports.

140912-pmwj27-$480million-IMAGEAbout 75 percent of goods are transported in São Paulo are shipped by truck. Of the state’s 36,000 kilometers of paved roads, 5,000 kilometers correspond to divided (dual carriageway) highways. The state has a maintenance program but heavy use and strong growth in the number of motor vehicles make it necessary to rehabilitate and widen existing roads.

Under São Paulo’s highway investment program, to which the IDB made another $480 million loan last year, about 500 kilometers of roads will be upgraded. The loan will also finance engineering studies, logistical planning and measures to improve road safety.

The new loan is for 25 years, with a 5-year grace period and a LIBOR-based interest rate. Local counterpart funds for the program will total $206 million.

For more about the São Paulo highways program, go to http://www.iadb.org/en/projects/project-description-title,1303.html?id=BR-L1401

For more about IDB projects in Brazil, visit http://www.iadb.org/en/countries/brazil/brazil-and-the-idb,1002.html.

Established in 1959, the Inter-American Development Bank (IDB) is a source of multilateral financing for sustainable economic, social and institutional development programs and projects throughout Latin America and the Caribbean. More information about the IDB is at http://www.iadb.org/. For more about IDB projects, visit http://www.iadb.org/en/projects/projects,1229.html.

Source: Inter-American Development Bank