SALVADOR METRO DEVT

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The Salvador Metropolitan Development Project will provide a line of credit (sub-loans) to the municipalities of the Salvador Metropolitan Region (SMR) to finance priority investments in its development plan. It will also provide technical assistance to the Ministry of Urban Development and the Environment to help develop management programs for other metropolitan areas and to the Salvador Metropolitan Development Agency to strengthen management of the SMR. The sub-loans would finance the following investments: upgrading of low-income communities, infrastructure, municipal services, and productive activities (site preparation, construction and equipment). The project will focus on strengthening the capabilities of the SMR to plan, finance and execute priority projects on the basis of criteria acceptable to the Bank. It will improve the management of municipal finances by strengthening revenue generating mechanisms including cost recovery. It will also introduce sub-loans to Brazil's Northeast, an area that has traditionally relied on federal and state grants for municipal services.