Notícias
HEAVY RAINS HIT SOUTHERN BRAZIL
Multilateral banks allocate over BRL 15 billion in aid to Rio Grande do Sul
The city of Porto Alegre after heavy rains that caused unprecedented flooding in the region - Credit: Ricardo Stuckert / PR
Major multilateral banks, such as NDB, CAF, IDB and the World Bank, have announced emergency funds for Rio Grande do Sul to deal with the aftermath of heavy floods that have hit the state for the last two weeks. The total assistance on offer currently exceeds BRL 15.6 billion.
On Tuesday, May 14, New Development Bank President and former Brazilian President Dilma Rousseff announced approximately BRL 5.75 billion in assistance for the reconstruction of Rio Grande do Sul. That amount was discussed during talks with President Luiz Inácio Lula da Silva and the State Governor Eduardo Leite.
"We are going to allocate USD 1.115 billion, or about BRL 5.750 billion, in funds from the New Development Bank to help the state of Rio Grande do Sul and the gauchos, who adopted me over 50 years ago, to overcome this tragedy," said Rousseff on the social network X.
The funds will be transferred directly to the state and also through partnerships with other financial institutions, such as National Bank for Economic and Social Development (Banco Nacional de Desenvolvimento Econômico e Social – BNDES), Banco do Brasil and Regional Development Bank of the Far South (Banco Regional de Desenvolvimento do Extremo Sul - BRDE).
Quero anunciar a liberação de US$ 1,115 bilhão - o equivalente a R$ 5,750 bilhões - dos recursos do @NDB_int para o estado do Rio Grande do Sul enfrentar a calamidade. Já conversei com o presidente @LulaOficial e o governador @EduardoLeite_. Fiquem com meu pronunciamento.… pic.twitter.com/jiXfNXOAz2
— Dilma Rousseff (@dilmabr) May 14, 2024
PARTNERSHIPS— Out of that total, around USD 500 million from the BRICS Bank will be transferred through BNDES, with USD 250 million to be allocated to small and medium-sized enterprises and another USD 250 million to be made available for environmental protection, infrastructure, water and sewage treatment and disaster prevention projects. The NDB has made USD 200 million available for direct allocation, which may include infrastructure works, urban roads, bridges and highways.
In partnership with Banco do Brasil, the NDB will allocate USD 100 million to agricultural infrastructure, crop storage and logistical infrastructure projects. With BRDE, USD 20 million will be released immediately for development projects, urban mobility and water infrastructure. Another USD 295 million allocated via BRDE is in the final approval stage, and will go towards urban and rural development projects, basic sanitation and social infrastructure.
The BRICS Bank was created by Brazil, Russia, India, China and South Africa in 2014. Bangladesh, Egypt, the United Arab Emirates and Uruguay have joined the institution as "prospective members" until the definitive instrument of accession is deposited.
“We express our absolute solidarity to [Brazil] and commit ourselves to supporting the immediate relief effort for the victims and the reconstruction of the state's infrastructure, in coordination with the directives of the federal, state and municipal governments.”
Sergio Díaz-Granados, President of the Development Bank of Latin America and the Caribbean
CAF — Also on Tuesday, the Development Bank of Latin America and the Caribbean (Banco de Desenvolvimento da América Latina e Caribe – CAF) announced that it would provide up to BRL 3.8 billion (USD 746 million) to help mitigate the effects of the floods in Rio Grande do Sul. “We express our absolute solidarity to [Brazil] and commit ourselves to support the immediate relief effort for the victims and the reconstruction of the state's infrastructure, in a coordinated manner with the directives of the federal, state and municipal governments,” declared the institution's president, Sergio Díaz-Granados.
Of that total, BRL 306 million will be invested in a BRDE credit line, with reduced interest and longer terms, to rebuild housing, help micro and small businesses, improve the environment and rebuild infrastructure. Another BRL 382 million can be allocated to the Federal Government's Climate Reconstruction and Resilience Program (Programa de Reconstrução e Resiliência Climática do Governo Federal).
Most of the funds refer to a credit line of up to BRL 2.5 billion for BNDES, which was approved in 2023 and is in the process of being formalized. There is also another line of credit to be forwarded through the development agency Badesul, an agency of the state's Secretariat for Economic Development, of up to BRL 153 million.
Another BRL 408 million comes from a loan to the City of Porto Alegre through the Social Innovation for Territorial Transformation Program, already approved by the External Financing Commission (Comissão de Financiamentos Externos – Cofiex), a body of the Ministry of Planning and Budget.
CAF had already made BRL 1.25 million available to support emergency projects and BRL 5 million in cooperation with the Ministry of Planning and Budget, to be used for climate action mitigation measures.
"This is an unprecedented tragedy. The IDB can help, beyond this package of measures, with technical expertise in resilience projects and with studies and proposals to try to deal with this scenario"
lan Goldfajn, President of the Inter-American Development Bank
BID — Last week, the Inter-American Development Bank (IDB) announced that BRL 5.5 billion had been earmarked for job protection, support for small and medium-sized enterprises and infrastructure projects to rebuild the cities devastated by the floods in Rio Grande do Sul.
The IDB's aid package includes BRL 1.5 billion in new contracts that have already been negotiated and will be expedited to meet the humanitarian emergency in support of micro and small businesses and immediate relief. Another BRL 4 billion are lines of credit for future negotiations aimed at rebuilding resilient infrastructure.
"This is an unprecedented tragedy. The IDB can help, beyond this package of measures, with technical expertise in resilience projects and with studies and proposals to try to deal with this scenario", said the bank's president, Ilan Goldfajn, who also announced the donation of BRL 3 million for emergency humanitarian aid to the state.
WORLD BANK — For its part, the World Bank is providing emergency support to Rio Grande do Sul, with approximately USD 125 million (around BRL 625 million) in resources from ongoing projects already available for immediate reallocation. The amounts come from the projects "Urban Resilience Program in Southern Brazil", "Revitalization Program for Downtown Porto Alegre" and "Support Program for the New Bolsa Família". In addition, teams from the institution are providing technical assistance in damage assessment, prioritization and grant execution.
In addition, the institution is talking with federal, state and municipal governments and BRDE about expediting the availability of more resources. The World Bank has experience in managing crisis situations and reconstructions linked to natural disasters in several countries. "We are bringing this knowledge to bear on the rapid recovery of the state. We are also ready to work together with the competent authorities to prevent future disasters like this from causing so much human and material damage," said the World Bank's Acting Director and Operations Manager for Brazil, Sophie Naudeau.