WASHINGTON DC, APRIL 29, 2025 - The World Bank Board of Directors has approved a new project to help the State of Rio Grande do Sul mitigate the effects of extreme weather events and promote a more efficient use of public resources. The US$359.6 million Sustainable Recovery and Climate Resilience Development Policy Loan complements the Bank's ongoing efforts to support the Government of Rio Grande do Sul, along with neighboring states, in building improved systems and infrastructure for climate monitoring, early warning, and flood mitigation. This initiative will help the state better respond to its people's needs when such events occur.
The first pillar of this project focuses on recovery from the devastating 2024 floods, which started a year ago today, and bolstering the state's ability to withstand the shocks of future extreme weather events, especially for its most vulnerable populations. Central to this effort is the adoption of the Rio Grande Plan and the enhancement of the state's financial readiness for the next shock.
"The World Bank is proud to support the State of Rio Grande do Sul in this project. By strengthening policies and promoting efficient resource use, we are paving the way for a more sustainable future," said Johannes Zutt, World Bank's Country Director for Brazil.
The Rio Grande Plan will introduce a framework to manage emergency response, reconstruction, and resilience-building efforts. The Rio Grande Plan Fund (FUNRIGS) will be established to finance these initiatives.
Additionally, the project will support the "Volta por Cima" Program, designed to provide swift financial assistance to low-income populations affected by future extreme weather events, with a focus on women-led households.
The "Mulher Empreendedora" Program is another key component, promoting the financial resilience of women through entrepreneurship by setting quotas for female beneficiaries in state entrepreneurship programs.
The second pillar of the project aims to enhance the efficient use of public resources, supporting initiatives that require budget allocations to be informed by spending reviews, which will emphasize spending quality, cost control, and the monitoring and evaluation of public policies.
This initiative will enable the state to adopt a new framework for public investment management, ensuring that projects undergo comprehensive appraisals-covering technical, socio-economic, fiscal, financial, legal, environmental, and climate aspects-before receiving financing.
The project complements various other World Bank-supported initiatives to build resilience in Rio Grande do Sul, including flood protection in Porto Alegre city, a line of credit for municipal resilient infrastructure provided through the Southern Brazil Regional Development Bank (BRDE), and support for regional climate monitoring and early warning with the Council for Development and Integration in the South (CODESUL). Technical assistance was also provided by the Global Facility for Disaster Reduction and Recovery.
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