WASHINGTON, August 3, 2010 – The World Bank approved today US$326.8 million in additional financing for the São Paulo State Feeder Road Project. The new financing will carry on the objective of the original project, to improve the efficiency of the State’s paved municipal road network, contributing to reducing transportation and maintenance costs, as well as travel times. The additional financing will enable the rehabilitation of approximately 1,900 km [1,180 mi] of local feeder roads.
"Transport and logistics are key elements for São Paulo State’s competitiveness,” said the Governor of São Paulo, Alberto Goldman. “The partnership with the World Bank in the Feeder Roads Project will be substantially reinforced by this additional financing, increasing the efficiency of the road transportation system and the State’s growth, and facilitating the movement of people and the outflow of products from the interior.”
This financing complements a US$ 167 million loan signed in August 2009, which recovered 800 km [500 mi] of roads. In total, the State’s Feeder Roads Program intends to rehabilitate and provide drainage and signaling for up to 12,000 km [7,450 mi] of local paved roads, more than half of which has already been finalized. The project also supports the institutional strengthening of the State, helping it harmoniously integrate investment programs, environmental management and transport logistics.
“This new financing will expand the program’s significant achievements so far,” said Eric Lancelot, World Bank Project Manager. “It will contribute to better transportation conditions in all the State by expanding access, reducing logistical costs and increasing traffic safety.”
This is a commitment-linked, US$ denominated IBRD Flexible Loan withvariable spread with all conversion options, repayable in 30 years, including 5 years of grace and level principal repayments. Since 1952, the World Bank has invested approximately US$ 4.6 billion in São Paulo (including today’s loan).