São Paulo cities request US$27mn World Bank funds for water management

Thursday, July 7, 2011

The governments of São Bernardo do Campo and Guarulhos cities in Brazil's São Paulo state are requesting a combined US$26.9mn loan from the World Bank to support the third and fourth phases of an integrated water management program.

The São Bernardo do Campo project, budgeted at US$41.4mn, involves institutional capacity building, urban upgrading and environmental protection and recovery. The bank would lend US$20.8mn for this stage, according to a project proposal published on the multilateral's website.

The US$11.7mn Guarulhos project includes integrated water supply and sanitation and institutional capacity building. The World Bank would provide US$6.06mn for this component.

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The water management program, known as Mananciais, was approved by the World Bank in July 2009 along with loans for the first and second phases of the program for the São Paulo state government and state water utility Sabesp respectively.

The initiative aims to bring together state and municipal governments to reverse headwater deterioration, improve land use planning and control and improve the living conditions of poor residents in reservoir basins.

The bank has proposed a September 15 deadline for its board to approve the funding.