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According to the WB, the development objective is to expand finance for sustainable housing construction and efficient urban development in Brazil.
The proposed operation is an Investment Project Financing (IPF) initiative with Caixa Economica Federal (Caixa), a prominent National Development Bank and a key player in Brazil's housing sector. This project is strategically aligned with the Federal Government's vision and priorities, and specifically with the Brazilian National Treasury Secretariat's Eco Invest Brazil Program. The program will provide a credit line and complementary technical assistance designed to promote and scale sustainable housing in Brazil. It is designed to establish structural conditions that facilitate both public and private investments aimed at housing that provides resource-efficient and rationally planned urban settlements, and that help cities increase the economic benefits of urbanization while providing more livable, valuable, and cost-efficient homes. The operation specifically supports World Bank priorities on jobs and investment, by creating jobs. This is done through the support of sustainable urban settlements in cities, which contain 90% of the jobs in the country; and through the process of construction of housing which, of all infrastructure investments, has among the highest level of employment creation per unit of investment and accounts for a large portion of employment and production value in the construction sector Brazil. The program will be executed through the private sector and is designed to scale private investment in sustainable housing in the medium-long term. Caixa has engaged with the International Finance Corporation (IFC) and the International Bank for Reconstruction and Development (IBRD) to harness external resources and develop a dedicated line of credit. This initiative employs blended financing, incorporating resources from Eco-Invest, to capitalize on a largely untapped opportunity within the national housing construction market. The focus is on housing developments certified as sustainable. The project will be organized around two primary components: the first involves the establishment of a credit line to finance environmentally certified housing developments, while the second is dedicated to institutional strengthening and strengthening financial products and tools to support the project's objectives.
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