The World Bank has approved a $38 million loan to help Brazil to modernise and strengthen its energy sector.
The loan will be used to fund the Energy and Mineral Sectors Strengthening Project II (META 2).
Public institutions and sectoral agencies will gain access to technical assistance activities including studies, training, methodologies, databases and IT equipment.
The loan comes at a time Brazil’s energy sector is failing to realise its full development potential and promote environmental sustainability and social inclusion.
Using the loan, Brazil is expected to increase its production of more reliable power, at lower prices.
Brazil’s Ministry of Energy will utilise the loan to:
- Increase efficiency, long term infrastructure adequacy and climate resilience in the energy and mining sectors.
- Institutional strengthening of energy and mining institutions to establish and implement strategies, policies and regulation; and
- Implementation support, monitoring and evaluation, knowledge sharing and dissemination.
“The energy and mining sectors are among the main drivers of the Brazilian economy as they form the basis for the sustainability of the industrial and commercial sectors, in addition to leading to the provision of services that are essential for the quality of life of citizens. This project is a continuation of long-term collaboration with the World Bank. This new phase will promote changes to support the sustainable extraction and processing of minerals and metals to meet the needs of the global supply chain for inputs and new technologies. In energy, working together will make it possible to increase the efficiency and resilience of markets in Brazil,” said Bento Costa Lima Leite, Brazil Minister of Mining and Energy.
“META’s first phase provided technical assistance to strengthen the capacity of key public institutions to increase the sector’s contributions towards a lower carbon growth path that is environmentally and socially sustainable,” says Paloma Anós Casero, World Bank Director for Brazil. “This second stage aims at increasing efficiency, long term infrastructure adequacy and climate resilience in both sectors, allowing them to grow in a more efficient and competitive way.”