US$ 49.6 million loan toincrease energy and mineral sector contributions for inclusive andenvironmentally-friendly growth
World Bank will help adaptBrazil’s best practices to other developing countries
WASHINGTON,December 20, 2011 – Brazil’s energy and mining sectors are among the largest in thedeveloping world, and have contributed significantly to the country’s growth in recentyears. However, both still facechallenges to realize their full development potential and promote environmentalsustainability and social inclusion.
To supportBrazil’s efforts to meet these challenges, the World Bank has approved today aUS$ 49.6 million loan for the Energyand Mineral Sectors Strengthening Project. The project will directly benefit the Brazilian population, andespecially the poorer groups most dependent on energy affordability and mineralextraction, who will have access to more reliable power at lower prices, andreceive increased positive spillovers from an expanding, more efficient andsustainable mineral sector.
The Project will provide technical assistance to strengthen thecapacity of key public institutions to increase the sector’s contributionstowards a lower carbon growth path that is environmentally and sociallysustainable. This will be especially important as Brazil accelerates itseconomic growth in the next few years and continues to expand its global rolein the mineral and energy sectors.
“Brazil has oneof the world’s cleanest energy matrices in the world and is a leading miningcountry, with extensive regulatory and implementation experience in bothsectors. This has long drawn the attention of other developing countries,” said MakhtarDiop, World Bank Country Director forBrazil. “TheProject will help make this wealth of knowledge available, expanding the reachof its positive economic, social and environmental effects as countries inAfrica, Latin America and the Caribbean learn from Brazil.”
The project hasfour components:
- Strengthening government capacity to promote sustainable development in the energy and mineral sectors, includingtechnical assistance for the Ministry of Mines and Energy to develop investmentstrategies, implement sustainability policies and monitor impacts.
- Strengthening regulatory agencies such asthe National Electricity Agency (ANEEL), the National Mineral ProductionDepartment (DNPM) and the National Geological Survey Service (CPRM). Thecomponent will support improved policy formulation, monitoring and control ofthe power sector, institutional strengthening in the mineral sector andmodernization of geological surveys.
- Supportfor the development and adoption of cutting-edge technologies in both the power and mineral sectors, toimprove research, prevent natural disasters and attract investments.
- Supportfor south-south cooperation, including the development of internalprocedures, technical assistance and capacity building in the areas of climatechange, renewable energy, regulation, and social sustainability, among others,in the mineral and energy sectors.
This USdollar-denominated commitment-linked IBRD flexible loan with a variable spreadhas a 17.5 grace period and 18 years final maturity.