SP River CleanUp (IFC-43609)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jan 29, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
DESENVOLVE SP - AGENCIA DE FOMENTO DO ESTADO DE SAO PAULO S.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 75.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS May 17, 2024

Disclosed by Bank Dec 29, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The proposed IFC investment consists of a financing package of up to US$100 million to Desenvolve SP – Agência de Fomento do Estado de São Paulo S.A. (“Desenvolve SP” or “DSP”) to support its lending to private sector medium sized water and energy service companies (“WESCOs”) operating in the water, wastewater and solid waste sectors. The financing package will consist of an A-loan up US$75 million and would mobilize institutional investors to invest in an up to US$25 million B-Loan. The proceeds of IFC’s loan will be used as followed: (i) at least 75% will be used to finance WESCOs that enter into performance-based contracts (“PBCs”) under the Pinheiros River Clean-up program; and (ii) up to 25% will be used to finance small and medium-sized enterprises (“SMEs”) in the waste and water sector (the “Project”).

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

According to the IFC, the proposed investment consists of a loan facility of US$100 million to Desenvolve SP, comprised of an A-Loan of up to US$75 million and would mobilize institutional investors to invest in an up to US$25 million B loan. The loan proceeds will be used to support its lending to private sector medium sized water and energy service companies operating in the water, wastewater and solid waste sectors. 

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

According to IFC, Desenvolve SP is the São Paulo State development agency, constituted as a legal entity under State Law 10.853/01 and considered as a nondependent public company, with authorization from the Central Bank to operate. It began operations in 2009 and is 99.9% owned by the State of São Paulo, reporting to the São Paulo State Finance and Planning Secretariat (Sefaz). With long-term loans and competitive interest rates, DSP provides support to the development of small and medium businesses and municipalities in São Paulo, providing financing to MSMEs and Municipalities in the São Paulo State, as well as providing funding to innovation and sustainable projects, fostering economic growth and job creation in the state.

Desenvolve SP is focused on providing long-term financing, enabling investments in technology and innovation, increasing business efficiency and profitability, while respecting the environment and preserving natural resources. DSP offers a wide range of credit facilities for the expansion, modernization, increase of production capacity, implementation of new plants and relocation of operations. Since its inception, Desenvolve SP has disbursed BRL3.9 billion, representing more than 6,429 operations, distributed across 407 municipalities to support 3,951 enterprises and 168 municipal governments.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

DESENVOLVE SP – AGÊNCIA DE FOMENTO DO ESTADO DE SÃO PAULO S.A.
Brunna Teles Pereira
Institutional Relations Manager
+55 11 31230477
brunna.pereira@desenvolvesp.com.br
Rua da Consolação 371, Sao Paulo - SP
www.desenvolvesp.com.br

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works