Activities include a wide range of urban interventions to better integrate the city center
WASHINGTON DC, June 12, 2023 — The WB Board of Directors approved a loan of EUR 77.76 million (equivalent to R$395.8 million) to the city of Porto Alegre for the implementation of the Centro+4D project. The goal is to support an inclusive and sustainable revitalization program focused on the central area of Porto Alegre, state capital of Rio Grande do Sul. Investments under the program will aim to improve accessibility and living conditions, while promoting a wide range of additional benefits.
Physical and institutional interventions will cover the areas of urban mobility, flood risk reduction, creation and improvement of public spaces and green areas, in addition to retrofitting public facilities and landmark historical buildings. There will also be opportunities for expanded community participation and social responsibility, and for the socioeconomic inclusion of vulnerable groups and individuals.
The project will be cofinanced by the French Development Agency (AFD), with additional funds provided through a €51.84-million credit operation (equivalent to R$263.9 million). The Porto Alegre municipal government will provide matching funds in the order of €32.4 million (R$164.9 million).
The project name—Centro+4D—refers to Porto Alegre’s Historic Center and Fourth District (4D), which include areas in a central location, installed infrastructure, and high concentration of jobs and opportunities. However, these two districts also present several challenges and historically repressed spatial, socioeconomic, and urban management demands. The Fourth District comprises five neighborhoods: Floresta, São Geraldo, Humaitá, Navegantes, and Farrapos.
“Porto Alegre has a very rich history. We must make the best possible use of the strategic advantages provided by the Historic Center. Starting with some specific interventions in the area, we aim to facilitate a long-term transformation process, which will be essential to improving the well-being of the Porto Alegre population,” says Johannes Zutt, World Bank Country Director for Brazil.
Since the 1980s, central Porto Alegre has experienced physical, economic, demographic, and social decline, as economic activity and general development expanded toward the city’s south. Underinvestment and property/land depreciation created a vicious cycle. Several programs and policies have attempted to reverse this decline in Porto Alegre, albeit with mixed results.
“Being able to announce such significant investment is yet another achievement in the great economic and social change we are promoting in Porto Alegre's Historic Center and Fourth District. We will continue pursuing new partnerships to ensure the maintenance and expansion of the public works required to bring new life and improved services to our public spaces. Our challenge is to bring improvements to our city and to the life of its people," points out Sebastião Melo, Mayor of Porto Alegre.
The current administration has established an ambitious long-term development vision for the urban center of Porto Alegre, along four main lines of work: (a) supporting private sector-led growth and investment; (b) improving the attractiveness and competitiveness of the city center; (c) helping to create a denser, more pedestrian-friendly, and more inclusive city, in addition to supporting climate change mitigation efforts; and (d) reducing poverty and improving equity. Local authorities have also set ambitious goals to increase the number of people residing in the Historic Center; to foster cultural tourism and create new jobs in the sector; and to implement green certification and sustainability standards for new and renovated buildings.
“These resources will certainly lead the city center of Porto Alegre toward a new reality. We will continue working with the aim of preserving our historical, cultural, and architectural heritage, while applying best practices in urban sustainability, innovation, planning, and management," says Cezar Schirmer, Porto Alegre's Planning Secretary, who led the negotiations of the loan.
The program is aligned with Porto Alegre's main sectoral planning instruments and is an integral element of the city's approach to addressing climate change in the urban development and transport sectors. The investments prioritized by the proposed operation are fully compliant with the Porto Alegre Environmental and Urban Development Master Plan, which is currently being updated; and with the guidelines set out in the 2022 Historic Center Urban Mobility Plan, which aims to promote safe, accessible, and affordable nonmotorized transport, integrated into a multimodal transport system.
Centro+4D will complement a number of other efforts Porto Alegre is undertaking on the climate front, including a public-private partnership (PPP) for low-emission street lighting, as well as tax credits and building rights for developers who adopt low-carbon building practices. Porto Alegre has also started developing a Climate Action Plan with the explicit goal of reducing GHG emissions by 50 percent by 2030, and achieving carbon neutrality by 2050.
The EUR 77.76 million operation, financed by the International Bank for Reconstruction and Development (IBRD), has a final maturity of 35 years, including a 5-year grace period.
Website: www.worldbank.org/pt/country/brazil
