Dilma Rousseff, current president of the BRICS Bank, announced on Tuesday (14) that the bank – called the New Development Bank (NDB) – will allocate US$1.115 billion to the state of Rio Grande do Sul, southern Brazil. The aim is to rebuild the urban and rural infrastructure in the municipalities hit by the heavy flooding since the end of April and to help get Rio Grande do Sul's life back on track.
Rousseff spoke with President Luiz Inácio Lula da Silva (Workers’ Party) and the governor of Rio Grande do Sul, Eduardo Leite (Brazilian Social Democracy Party), to agree on the transfer of funds, which will be used for urban infrastructure, basic sanitation, environmental protection and disaster prevention.
“I want to reiterate my solidarity with the people of Rio Grande do Sul and the federal and state governments. The BRICS Bank is committed and will work to rebuild and restore the state's infrastructure. We want to help people rebuild their lives,” said the economist and former Brazilian President (2011-2016) in a video posted on social media platforms.
From Shanghai, China, where the BRICS Bank is headquartered, she announced that the multilateral financial institution will allocate resources without bureaucracy to Rio Grande do Sul through direct action and also through partnerships with other Brazilian financial institutions, such as the National Bank for Economic and Social Development (BNDES, in Portuguese), the Bank of Brazil and the Regional Development Bank of the Far South (BRDE, in Portuguese).
“I'm sure that through the strength of the people of Rio Grande do Sul, the solidarity of the Brazilian people and the international community, this crisis will be overcome. And we must take all measures to ensure it never happens again. Stand firm, keep hope and solidarity. We stand together."
Rousseff explained that the funds will be transferred quickly and can be allocated according to the urgency and priorities of Rio Grande do Sul.
Around US$500 million from the BRICS Bank will be transferred through BNDES, of which US$250 million will go to small and medium-sized businesses and another US$250 million to environmental protection, infrastructure, water and sewage treatment and disaster prevention projects. The NDB has US$200 million available for direct application, which can include infrastructure works, urban roads, bridges and highways.
In partnership with the Bank of Brazil, the NDB will allocate US$ 100 million to agricultural infrastructure, storage and projects aimed at logistics infrastructure. With the Regional Development Bank of the Far South (BRDE, in Portuguese), US$20 million will be released immediately for urban development, mobility projects and water resources.
Another US$295 million in the BRDE contract – in the process of final approval – will be used for urban and rural development, basic sanitation and social infrastructure.
Founded in 2015 by Brazil, Russia, India, China and South Africa, the BRICS Bank also includes Egypt, Bangladesh and the United Arab Emirates.
