The Project will support FONPLATA's objective to promote the development of local and sustainable infrastructure in Brazilian federal states and medium and large size cities. The Project is also in line with NDB's mandate to mobilize resources for infrastructure and sustainable development, particularly in the context where subnational entities of member countries face constraints in addressing infrastructure investment gaps.
The Loan will be used by the Borrower for financing multi-sector infrastructure projects in Brazil through lending funds to large and medium-sized municipalities (with a population between 100,000 and 1 million inhabitants) and federal states. The main goal of the financing is to support small multi-sector infrastructure projects aimed at improving the delivery of vital infrastructure services in the respective regions.
NDB will provide an unsecured loan to FONPLATA for on-lending as sovereign guaranteed loans to large and medium-sized municipalities and federal states in Brazil for multi-sector local and sustainable infrastructure projects including water and sanitation, social housing, transport, tourism -enabling, and urban infrastructure.
The Project will support socio-economic development in large and medium-sized municipalities and federal states in Brazil, and will contribute primarily to Brazil's efforts to achieve the Sustainable Development Goal ("SDG") 9: build resilient infrastructure, promote sustainable industrialization, and foster innovation.
ENVIRONMENTAL AND SOCIAL ASPECT
The Project has been categorized as Category FI-B in line with NDB's Environmental and Social Framework. Environmental and social ("E&S") impacts and risks of the Project will vary depending on the nature and magnitude of each of the Sub-Projects' impact on the environment.The Project's main E&S impacts may include alteration of land use, pollutant emissions during construction, occupational health and safety. The negative impacts will be mitigated by adherence to country system requirements, FONPLATA's Environmental and Social Risk Management System (SARAS), and implementation of an Environmental and Social Impact Management Plan.
The Project will be implemented over a period of three years. FONPLATA will be responsible for the overall Project monitoring and evaluation, including the selection of sub-projects, collection of all information, and supervision of sub-project performance. Sub-borrowers will be responsible for preparing and implementing the Sub-Projects, including conducting procurement and sharing implementation reports with FONPLATA.
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