The Inter-American Development Bank (IDB) has approved a $31.7 million loan to designed to improve infrastructure in the municipality of Maracanaú in the northeastern Brazilian state of Ceará. The funds will drive productivity in the municipality, which is part of the metropolitan area of Fortaleza, the capital of Ceará and one of the areas with the greatest potential for economic development in that part of Brazil.
The goal of the program is to improve the municipality's transport infrastructure and ease the negative impact of global warming by providing infrastructure that is efficient and sustainable. The plan will cut travel times and the cost of moving freight and people by upgrading road infrastructure and enhancing its connections with the regional highway grid. This will reduce greenhouse gas emissions by creating a designated lane for public transport and supporting the strengthening of the municipality's institutions.
Maracanaú's strategic location, near major highways, the Fortaleza international airport and several international ports, is a competitive advantage for the area's growth. It led to the creation there of the largest industrial park in the state, spanning 13.3 km2, or 21 percent of the urban area.
However, the growth in economic activity has had a strong impact on traffic and demand for travel, making for a slow pace of driving in the transport system and heavy congestion. This has had a negative impact on travel times, fuel consumption and emissions as vehicles move so slowly.
The project calls for building two-lane roads, paving and upgrading local highways so as to increase their capacity. It will also improve their links to the state and federal grids and boost the efficiency of public transport by creating a buses-only lane on existing roads. The program will also support institutional improvements through the development of a logistical plan and implementation of planning tools, as well as measures to mitigate climate change and encourage work through private initiatives.
Beneficiaries of the project will include people who use public transport, the highway system and freight carriers. This includes nearly 8,000 trips per day, of which 93% are private cars and the rest are trucks and buses.
The IDB loan totals $31.7 million, which will be matched by the municipality of Maracanaú. The IDB loans is over 25 years, with a disbursement period of five years, a grace period of 5.5 years and an interest rate based on the LIBOR.
About the IDB
The mission of the Inter-American Development Bank is to improve lives. Founded in 1959, the IDB is one of the main sources of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides consulting services about policies, technical assistance and training to public and private clients across the region.
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