IDB Board approves credit operation for Prosai Parintins in Amazonas

investment

Loan of US$70 million will be for basic sanitation, housing and urban mobility works and actions

The board of directors of the Inter-American Development Bank (IDB) approved, this Tuesday (16), the request for a credit operation from the Government of Amazonas, in the amount of US$ 70 million for the Integrated Sanitation Program (Prosai) of Parintins. The amount will be invested to improve the socio-environmental and urban infrastructure conditions of the municipality, 396 kilometers from Manaus.

Executed by the Special Projects Management Unit (UGPE) of the Government of Amazonas, Prosai Parintins will urbanize an area at risk of flooding in the region known as Lagoa da Francesa. The objective of the interventions is to solve the environmental, urban and social problems of the location and surrounding areas. The planned works include drainage, water and sewage coverage, urban mobility, construction of housing units and urban parks, among other public facilities, in addition to recovering vegetation cover in degraded areas.

The program will also support the improvement of the quality and quantity of tourist services, the strengthening of Municipal entities responsible for the operation and maintenance of infrastructure services, as well as the inclusion of gender and diversity, in a transversal manner.

According to the UGPE secretary, Marcellus Campêlo, the approval of Prosai Parintins by the IDB executive directorate in Washington represents a decisive milestone in the preparation of the program.

“We will have other steps to follow until the contract is signed. But approval by the IDB board guarantees that the projects we prepare meet all the requirements to receive external financing”,

observe.

With Prosai Parintins, continues Campêlo, the Government of Amazonas will invest the largest investment in the history of the interior of the State in Parintins. It will amount to US$87.5 million, of which US$70 million will be financed by the IDB and US$17.5 million will be contributed by the state.

The leader of the IDB’s Water and Sanitation Division in Brazil and Coordinator of the Southern Cone Countries, Gustavo Méndez, highlighted the good receptivity of the bank’s board of directors to the project presented.

“Prosai was very well received by the IDB board, due to its multisectorality, the expected impacts on improving health, environmental conditions and climate resilience, economic access for the population to benefit and, mainly, for being within the Amazon and fitting within of the IDB’s Amazonia para Semper program. Now, we are completing the formalities and will begin to identify together the priority actions to continue the work”,

said the executive.

Next steps

With the approval of the financing body, the State of Amazonas will continue with the formal procedures to sign the loan contract with the Union, which will be the guarantor of the international credit operation.

According to UGPE Planning sub-coordinator, Leonardo Barbosa, the consolidation of the credit operation now requires authorization from the Federal Government and the Senate of the Republic. At the moment, he states, the State’s claim is under analysis of the Request for Verification of Limits (PVL) and Conditions with the National Treasury Secretariat (STN), a process in which the State presents proof of its debt capacity.

“Subsequently, the Attorney General of the National Treasury (PGFN) will submit the request to the Federal Senate. Finally, PGFN prepares the process for signing the loan, Guarantee and Counter Guarantee contracts”,

detailed.

*With information from consultancy

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