World Bank champions fiscal management and clean energy in Ceará, Brazil

WASHINGTON, DC, March 28, 2024 - Ceará, a state in Northeastern Brazil, will benefit from World Bank resources to improve public financial management and boost investments in clean energy, thanks to a new project approved today by the World Bank Board of Directors.

The loan, totaling JPY 80.1 billion (equivalent to US$541.9 million), will focus on two main areas. The first seeks to modernize information and management systems in the areas of public investment, asset management and internal controls. These reforms will improve the management of public resources by ensuring greater efficiency, transparency, and reducing the potential for fraud.

The second area will support a fair and clean energy transition, as Ceará is positioning itself as a key center for green hydrogen, capitalizing on its strategic location and abundant renewable resources. The project will support the implementation of policies and regulations that encourage renewable energy, including educational programs to offer specialized knowledge and skills related to clean energy - especially for vulnerable populations.

Throughout the project, Ceará will also benefit from technical assistance and capacity building initiatives, so it can fully implement the proposed reforms and achieve its sustainable development goals.

This project is part of the World Bank's broader effort to enhance fiscal and environmental sustainability at the sub-national level in Brazil to address climate change, promote environmental sustainability, and reduce regional inequalities.

It is also in line with Ceará's long-term development plan, Ceará 2050, which focuses on improving the provision of essential services such as health, education, water, public security, and jobs, while also fostering the green economy and innovation.

"This is an important operation for the State, in accordance with international practices for public debt management. The World Bank has worked extensively with the State's Finance and Planning Departments on this operation, which reduces the cost of debt service. As a result, more resources are available for investments in public policies," stated Fabrízio Gomes, Secretary of Finance for the State of Ceará.

"This World Bank loan will help Ceará to make a significant step towards achieving sustainable development. It underscores our commitment to enhancing public financial management and fostering a clean energy transition, so that the people of Ceará, and Brazil more generally, can realize a more inclusive and resilient future," added Johannes Zutt, the World Bank Country Director for Brazil.

This loan is guaranteed by the Federative Republic of Brazil and has a 20-year maturity period.

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