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IDB and BNDES to Accelerate Digital Transformation in Brazilian States and Municipalities with $180 Million in Financing
The Inter-American Development Bank (IDB) has approved a $150 million loan to implement PRODIGITAL, a joint program with the Brazilian Development Bank (BNDES) to advance digital transformation in Brazilian states and municipalities and enhance public services for citizens. The BNDES will contribute an additional $30 million to this financing, which has been approved by the IDB’s Board of Executive Directors.
The Federal Program for Digital Government and Infrastructure (PRODIGITAL)will co-finance a credit line for the BNDES for digital transformation projects in municipalities with more than 100,000 inhabitants, Brazilian states and the Federal District. Projects chosen from a group of eligible initiatives will be able to receive $2 million to $40 million in financing.
In addition to helping close the gap in funding for digital transformation projects in Brazil, PRODIGITAL will provide technical assistance to build up states’ and municipalities’ institutional capacities. The aim is to give the population access to more effective and efficient digital public services, digital inclusion and literacy programs, and greater connectivity.
“Digital services, both in the public and private sectors, have advanced very rapidly in Brazil and have made the country a reference in the field. With this partnership, we will contribute to bringing these advances to more Brazilian states and municipalities, understanding the efficiency of public services as an important way to promote transparency and efficiency for the population and businesses in the country,” said Ilan Goldfajn, president of the IDB.
“BNDES is committed to the digital transformation of Brazil, which involves increasing the availability of resources to finance these initiatives, which are essential for the competitiveness of our economy and for the inclusion of the country in the knowledge society. Through this important operation, the Bank expands its capacity to transform the lives of the Brazilian population,” highlighted the president of BNDES, Aloizio Mercadante.
The program aligns with the federal government’s efforts to expand coordination around e-government and with the BNDES institutional strategy, which seeks to support state modernization projects.
This is the ninth operation approved by the IDB under the 2021 Conditional Credit Line for Investment Projects, which is called Brasil Mais Digital.
The IDB loan has a 24.5-year repayment period, a six-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).
About the IDB
The Inter-American Development Bank (IDB) is devoted to improving lives in Latin America and the Caribbean. Established in 1959, the IDB partners with the public sector in the region to design and provide innovative, high-impact solutions for sustainable and inclusive development. Through financing, technical experience, and knowledge, it drives growth and well-being in 26 countries.
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