The World Bank's Board of Directors has approved a project aimed at aiding Rio Grande do Sul to handle extreme weather events and optimize public resource management. The Sustainable Recovery and Climate Resilience Development Policy Loan totals US$359.6 million and is part of the World Bank's broader efforts to assist Rio Grande do Sul and its neighboring states in developing systems for climate monitoring, early warning, and flood mitigation.
The project's first pillar targets recovery from the 2024 floods and increasing the state's capability to handle future weather-related shocks, with a special focus on vulnerable populations. The initiative includes the adoption of the Rio Grande Plan to manage emergency response and resilience efforts, and the creation of the Rio Grande Plan Fund (FUNRIGS) to finance these actions.
"The World Bank is proud to support the State of Rio Grande do Sul in this project. By strengthening policies and promoting efficient resource use, we are paving the way for a more sustainable future," stated Johannes Zutt, the World Bank’s Country Director for Brazil.
Additionally, the project will back the "Volta por Cima" Program, which aims to promptly assist low-income individuals affected by extreme weather, focusing on women-led households. The "Mulher Empreendedora" Program is also part of the project, aiming to enhance women's financial resilience through entrepreneurship.
The second pillar is designed to improve the use of public resources, promoting budgetary decisions based on spending reviews that prioritize quality, cost control, and policy evaluation. This is expected to foster a new approach to public investment management, ensuring projects are assessed thoroughly in various aspects before funding is approved.
The initiative aligns with other World Bank-supported efforts to bolster resilience in Rio Grande do Sul, such as flood protection in Porto Alegre, a line of credit for resilient infrastructure from the Southern Brazil Regional Development Bank (BRDE), and regional climate monitoring supported by the Council for Development and Integration in the South (CODESUL). Technical assistance came from the Global Facility for Disaster Reduction and Recovery.