WASHINGTON, DC, May 16, 2025 - The World Bank has approved a new financing package to support the State of Pernambuco in improving public fiscal management and strengthening the enabling environment for environmentally responsible private sector development, that can foster more employment and development opportunities in the state.
Pernambuco, a northeastern Brazilian state with around 9 million inhabitants, faces significant challenges, including high poverty and unemployment rates, as well as climate-related vulnerabilities such as water scarcity in the semi-arid interior and flood risks along the coast.
The US$275 million financing operation is structured around two main pillars: improving fiscal management and quality of public expenditure and strengthening the enabling environment for green private sector development.
"By supporting fiscal responsibility and fostering a greener private sector, this operation will help Pernambuco to lay the foundations for sustainable growth, create new economic opportunities, and enhance the resilience of vulnerable communities," said Johannes Zutt, World Bank Country Director for Brazil. "Investments in better public management and climate-smart solutions are essential for building a future where prosperity is both inclusive and sustainable."
Key Project Highlights:
- Strengthening Fiscal Management: Implementation of measures to improve expenditure control, streamline tax compliance, and optimize public investment management processes with sustainability criteria.
- Fostering a Green Private Sector: Modernization of business registration and licensing procedures, incentives for adopting sustainable practices through the Green Seal certification, and facilitation of licensing for renewable energy projects.
- Advancing Climate Transition and Emission Reductions: Support for the expansion of wind and solar energy generation capacity, as well as initiatives to curb greenhouse gas emissions and improve waste management practices.
This financing aligns with Brazil's Country Partnership Framework (CPF) and Pernambuco's Strategic Development Plan, reinforcing the commitment to building a more productive, inclusive, and greener economy.
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