1 May 2012: The World Bank approved a US$480 million loan to the State of Rio Grande do Sul, Brazil, to support a series of green growth projects in areas such as private sector development, public transport systems, education, and disaster risk management.

Largely as a response to the recent fiscal crisis in Rio Grande do Sul, the World Bank is providing this loan to support environmental and economic growth, and poverty eradication in the state. The loan will fund a Sector Wide Approach (SWAp), which supports a variety of local programs. Specifically, the Rio Grande do Sul SWAp will fund programs supporting better planning of public investments, better management of public assets, and private sector competitiveness. Furthermore, the loan will go towards programs paving and rehabilitating highways, expanding technology use in schools, and renovating school buildings. As Rio Grande do Sul lacks a disaster risk management system, despite being increasingly affected by extreme weather patterns, part of the funding will also support a more comprehensive disaster risk management program and monitoring system. [World Bank Press Release]