Brazil: Recovery and Trade-Facilitation Project in Guaíba, Rio Grande do Sul

approved

In May 2024, unprecedented floods struck the State of Rio Grande do Sul, Brazil, causing widespread destruction and displacing more than 50,000 people. The municipality of Guaíba, located in the Porto Alegre metropolitan area, was among the most severely affected. With an economy strongly linked to international trade, particularly with Asian markets, Guaíba's recovery is critical to restoring local livelihoods and regional economic activity. The Project will help Guaíba “build back better” by reconstructing and upgrading critical urban, transport, and flood protection infrastructure to withstand future extreme weather events. It will integrate climate-resilient design, adopt best practices in environmental and social management, and incorporate nature-based solutions where feasible. The Project comprises the following components: A. Urban Drainage and Flood Protection - Upgrading dikes, pumps, and drainage systems, and adding new flood prevention infrastructure. B. Green Logistics and Industrial Area - Developing infrastructure to enhance cross-border trade with Asia. C. Urban and Transport Access Infrastructure - Rebuilding and expanding resilient urban and transport systems to improve connectivity. D. Climate Monitoring, Risk Management, and Sanitation - Establishing climate monitoring, risk management, and emergency notification systems, alongside basic infrastructure restoration. E. Program and Project Management - Providing oversight and support across all components. With a population of about 93,000 and the fifth largest economy in the state, Guaíba's key industries include cellulose processing, auto distribution, elevator manufacturing, and other manufacturing sectors. This Project will address critical infrastructure gaps, strengthen climate resilience, and support sustainable, trade-driven economic recovery.