Belo Horizonte Urban Development Policy Loan

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The objective of the Belo Horizonte Inclusive Urban Development Policy Loan Project for Brazil is to support integrated and sustainable urban development and reduce social vulnerability in Belo Horizonte. This program document presents a proposed one tranche Development Policy Loan (DPL) to the Municipality of Belo Horizonte (BH) in the amount of US$200 million. Proactive integrated urban development strategies are urgently needed to address social exclusion, and create effective and long-term sustainable governance to benefit all residents. The value added of this operation lies in the potential knowledge partnership with the municipality. Belo Horizonte can become a leading laboratory of experimentation with new urban planning and management ideas and processes, in light of the knowledge the Bank brings to the client in specific issues such as housing development, resettlement practices, social programs, climate change adaptation and mitigation and results-based management. The operation began preparation in 2011 and has experienced delays; however no slippage or reversal of prior actions has occurred during this time. The operation was appraised and negotiated with the client during 2011-2012. The project has been pending resolution of internal clearances within the client administration, which have since been resolved. It has been confirmed that the project's prior actions continue to guide municipal policy and remain valid.