Green, Resilient and Inclusive Regeneration of the Central Area of Porto Alegre

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Porto Alegre current city administration had set out an ambitious long term development vision for Porto Alegre’s Urban Core along four key axes: (a) supporting private sector-driven growth and investment; (b) improving the attractiveness and competitiveness of Porto Alegre’s Urban Core; (c) supporting a denser, more walkable, and more inclusive city to promote inclusion, efficiency, and climate change mitigation; and (d) reducing poverty and improving equity. After having been impacted by historic floods in May 2024, the city has also committed to prioritize investments aimed at supporting disaster risk prevention and post-disaster reconstruction and recovery needs.The Project (Centro+4D) is seen as a critical anchor contributing to the needed recovery of Porto Alegre’s Urban Core and to unlock its transformation in the direction of the proposed long term development vision. Moreover, it represents the city administration’s commitment to a regeneration that is green, resilient, and inclusive. To implement Centro+4D, the Municipal Government has decided to partner with the World Bank and the AFD to benefit from global knowledge and expertise. The Centro+4D Project will implement a series of physical and institutional interventions to integrate Porto Alegre’s Urban Core through investments in flood risk prevention and flood management; urban mobility; overall green, climate-resilient and inclusive local infrastructure upgrades to public spaces; and investments dedicated to the social and economic post-disaster recovery of disadvantaged and vulnerable groups and individuals.The proposed Project will be structured as a €162.0 million IPF operation comprising a €77.76 million IBRD loan, a €51.84 million AFD co-financing loan, and €32.40 million in municipal counterpart funding. To achieve the proposed development objective, the Project includes three components described below: Component 1 – Green, climate resilient and inclusive post-disaster reconstruction investments in the Urban Core (€137.88 million, of which €63.41 million IBRD, and €42.27 million AFD and €32.2 million counterpart) Component 2 – Investments contributing to social and economic recovery of Disadvantaged and Vulnerable Groups and Individuals (€13.05 million, of which €7.71 million IBRD, €5.14 million AFD and €0.2 million counterpart) Component 3 – Project management (€11.07 million, of which €6.64 million IBRD and €4.43 million AFD)