WASHINGTON, United States of America – The World Bank Board of Directors 2007-09-18 approved a US$35.9 million loan to promote economic, social and environmentally sustainable development in the State of Rio Grande do Norte, in Brazil’s semi-arid and poor Northeastern Region.

The Rio Grande do Norte Integrated Water Resources Management Project will support the State’s integrated water resources management system and include the preparation of a water sector strategy and long term water sector investment program to improve supply and efficient use of water resources.

“Efficient water management is key to development in Brazil’s Northeastern states”, said John Briscoe, World Bank’s Director for Brazil.. “Together with other State and Federal actions, this project will reduce the vulnerability of communities to recurrent droughts and contribute to improvements in the quality of life of the poor by increasing the reliability of services and the quality of water delivered. Improving management of water is important for economic growth in the state".

The project will improve and expand basic water supply infrastructure in poor rural areas, including rehabilitation and expansion of both drinking water supply networks and pilot interventions to improve irrigation schemes. The enhanced integrated water resources management system will support more environmentally sustainable use of water resources and also increase access of poor families to reliable drinking water and decrease operational and maintenance costs of water allocation and distribution systems.

Specifically, the project will support the following activities:

• Institutional Development and Water Resources Management to improve the State’s water resources management capabilities and develop adequate water resources management instruments through improvement of the legal and institutional framework, water sector planning, information and operational instruments;
• Natural Resources Conservation and Protection
  This component will support the preservation of water quality, improve efficiency in water use, and generate water-saving technology;
• Water Infrastructure
  This component will provide technical and financial assistance to improve water availability;
• The Bank is a major partner in water resources management in Brazil’s Northeast. Activities include the PROÁGUA/Semi-Arid and several state programs, totaling more than US$700 million in investments.

This US$35.9 million loan is an IBRD fixed-spread loan, payable in 17 years, including 4 years of grace.

For more information on the Rio Grande do Norte Integrated Water Resources Management Project please visit: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=64624214&theSitePK=2748767&menuPK=2805091&Projectid=P089929

For more information on World Bank’s program in Brazil please visit: web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/LACEXT/BRAZILEXTN/0,,menuPK:322347~pagePK:141159~piPK:141110~theSitePK:322341,00.html