WASHINGTON, DC, November 16, 2023 — The World Bank Board of Directors approved a project that will enable the municipality of Rio de Janeiro to ensure the conditions for sustained provision of essential public services, better respond to changes in economic conditions and buffer the people against adverse shocks. Additionally, the initiative will support the transition to an urban development model that is low in carbon emissions, resilient to extreme climate events like heavy rains – which are set to become more intense and frequent as climate changes –, and socially inclusive. The US$135.2 million Rio de Janeiro Adjustment and Sustainable Development Policy Loan is the second in a series of two operations agreed between Rio's municipal government and the World Bank.
- Under these goals, the project will support the following activities:
- Improving fiscal accountability mechanisms
- Supporting tax incentives for companies that show progress addressing climate change impacts
- Strengthening the management and audits of pension records
- Supporting a pilot effort to revamp downtown Rio de Janeiro by 2030 through reforestation, better solid waste management and improvements in low-carbon and climate-resilient infrastructure
- Enhancing urban mobility, especially for the poorest population, by improving the operational model of Rio's bus rapid transit (BRT) system
- Regulating the complementary transportation service in informal settlements (comunidades) to establish quality and safety standards
- Implementing Rio's Cycling Expansion Plan, which would benefit lower-income population as they cycle more for transport than other segments of the population
- Implementing Rio's Road Safety Plan
- Supporting the creation of a transportation subsidy to help women that are survivors of domestic violence go to specialized referral services.
“The project will help Rio de Janeiro strengthen its fiscal management systems, while providing incentives to carbon-neutral companies, in addition to promoting a structural transition in the transportation sector under Rio's green economy reactivation agenda. It will also support reforms to attract long-term private financing to achieve these development goals,” said Eduardo Paes, Mayor of Rio de Janeiro.
“The fiscal reforms implemented in the city of Rio de Janeiro have already enabled the municipal government to regain access to credit with federal government guarantees to promote investments toward social, environmental, and economic objectives. The World Bank has been working in partnership with Rio in this initiative, and hopes to further deepen its support for fiscal responsibility through this new operation", said Johannes Zutt, World Bank Country Director for Brazil.