The World Bank has approved a financing package to aid the State of Pernambuco in Brazil. The package aims to improve public fiscal management and promote environmentally responsible private sector development. This initiative seeks to create employment and development opportunities within the state.
Pernambuco, located in northeastern Brazil, is home to approximately 9 million people. The state faces challenges such as high poverty and unemployment rates, along with climate-related issues like water scarcity in its semi-arid regions and flood risks along its coast.
The financing operation amounts to $275 million and focuses on two main areas: enhancing fiscal management and fostering an environment conducive to green private sector growth.
"By supporting fiscal responsibility and fostering a greener private sector, this operation will help Pernambuco to lay the foundations for sustainable growth, create new economic opportunities, and enhance the resilience of vulnerable communities," stated Johannes Zutt, World Bank Country Director for Brazil. He added that "investments in better public management and climate-smart solutions are essential for building a future where prosperity is both inclusive and sustainable."
Key aspects of the project include improving expenditure control, streamlining tax compliance, optimizing public investment processes with sustainability criteria, modernizing business registration procedures, providing incentives for sustainable practices through Green Seal certification, facilitating licensing for renewable energy projects, expanding wind and solar energy generation capacity, reducing greenhouse gas emissions, and enhancing waste management practices.
This financing aligns with Brazil’s Country Partnership Framework (CPF) and Pernambuco’s Strategic Development Plan. It underscores a commitment to fostering a more productive, inclusive, and environmentally friendly economy.
For more information or inquiries:
- Brasília: Sidrônio Henrique at sgomesdearaujo@worldbankgroup.org
- Washington D.C.: Yuri Szabo Yamashita at yszaboyamashita@worldbank.org