IDB infrastructure lending could reach US$12bn over next four years

Monday, April 11, 2011

IDB lending to Brazil for infrastructure projects could reach US$12bn from 2011-14, government news service Agência Brasil reported.

With 80-100 new loans foreseen during the period, both public and private sector financing is expected to total US$11bn-12bn.

Loans to Brazil account for the largest share of financing from the bank, representing 20% of its total activity. However, the funding is still insufficient to satisfy the country's demands, according to IDB economist Bruno Saraiva, who added that public sector funding has increased over the last five years.

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"Of the US$10.2bn lent during the period, some 75% has gone to governments," the economist said.

Over the last five years, US$2bn has gone to the transportation sector, US$1.5bn to urban development and US$1.2bn to basic sanitation. Energy, tourism, environment and social projects have also received funding.

Currently, some US$13.3bn in IDB financing is outstanding in the country, including 226 projects that are either being prepared or are underway, the report said.