Brics allocates $1.115 billion to Rio Grande do Sul
Brazil's Vice President and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin, along with the president of the New Development Bank (NDB), the so-called Brics Bank, Dilma Rousseff, formalized the allocation of $1.115 billion to support the reconstruction of Rio Grande do Sul, a Brazilian state severely affected by heavy rains and floods since late April.
The formalization took place during Alckmin's official trip to China, where the bank is headquartered. The support had been announced in May. “I am convinced that the reconstruction of the state will surpass the destruction,” said the minister.
Dilma Rousseff, former president of Brazil, emphasized that her mandate at the bank focuses on sustainable development and pledged to support the state within the institution's capabilities. She highlighted that the international bank has mechanisms to monitor the use of the funds but will not impose specific rules on their utilization. "Currently, it's difficult to fully predict the criteria for rebuilding the state," she said.
Distribution
Of the total $1.115 billion to be allocated to Rio Grande do Sul, the letter of commitment signed on Tuesday (Jun. 4), formalized the bank's investment of $495 million for the state's reconstruction. This amount will be distributed as follows: $200 million for infrastructure, including highways, bridges, streets, roads, and other facilities. The remaining $295 million will be managed by the Regional Bank of the Far South (BRDE) and designated for urban mobility, water treatment, basic sanitation, and social infrastructure projects.
The remaining $620 million will be provided by the National Bank for Economic and Social Development (BNDES) and the Bank of Brazil. These funds will finance small and medium-sized enterprises, environmental protection projects, agricultural infrastructure, logistics infrastructure, water and sewage treatment, and storage projects.
Brics Bank
In 2021, the bank, originally formed by the founders of the Brics—Brazil, Russia, India, China, and South Africa—expanded to include Bangladesh, Egypt, the United Arab Emirates, and Uruguay.
