Press Release No:2012/214/LAC.WASHINGTON, December 20, 2011. Brazil’s energy and mining sectors are among the largest in the developing world, and have contributed significantly to the country’s growth in recent years. However, both still face challenges to realize their full development potential and promote environmental sustainability and social inclusion.
To support Brazil’s efforts to meet these challenges, the World Bank has approved today a US$ 49.6 million loan for the Energy and Mineral Sectors Strengthening Project. The project will directly benefit the Brazilian population, and especially the poorer groups most dependent on energy affordability and mineral extraction, who will have access to more reliable power at lower prices, and receive increased positive spillovers from an expanding, more efficient and sustainable mineral sector.
The Project will provide technical assistance to strengthen the capacity of key public institutions to increase the sector’s contributions towards a lower carbon growth path that is environmentally and socially sustainable. This will be especially important as Brazil accelerates its economic growth in the next few years and continues to expand its global role in the mineral and energy sectors.
“Brazil has one of the world’s cleanest energy matrices in the world and is a leading mining country, with extensive regulatory and implementation experience in both sectors. This has long drawn the attention of other developing countries,” said Makhtar Diop, World Bank Country Director for Brazil. “The Project will help make this wealth of knowledge available, expanding the reach of its positive economic, social and environmental effects as countries in Africa, Latin America and the Caribbean learn from Brazil.”
The project has four components:
· Strengthening government capacity to promote sustainable development in the energy and mineral sectors, including technical assistance for the Ministry of Mines and Energy to develop investment strategies, implement sustainability policies and monitor impacts.
· Strengthening regulatory agencies such as the National Electricity Agency (ANEEL), the National Mineral Production Department (DNPM) and the National Geological Survey Service (CPRM). The component will support improved policy formulation, monitoring and control of the power sector, institutional strengthening in the mineral sector and modernization of geological surveys.
· Support for the development and adoption of cutting-edge technologies in both the power and mineral sectors, to improve research, prevent natural disasters and attract investments.
· Support for south-south cooperation, including the development of internal procedures, technical assistance and capacity building in the areas of climate change, renewable energy, regulation, and social sustainability, among others, in the mineral and energy sectors.
This US dollar-denominated commitment-linked IBRD flexible loan with a variable spread has a 17.5 grace period and 18 years final maturity.
Contacts: In Brasilia: Mauro Azeredo, (55 61) 3329-1059, mazeredo@worldbank.org In Washington: Patricia da Camara, (202) 473-4019, pdacamara@worldbank.org
For more information about Projects in Brazil see Brazil Projects
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