BRICS Bank Announces Investment to Rebuild Brazil

BRICS Bank Announces Investment to Rebuild Brazil

The president of the New Development Bank (NDB) of the Brics group, Dilma Rousseff, reported on Tuesday that the entity will allocate 1,115 million dollars for the reconstruction of the Brazilian state of Rio Grande do Sul, devastated by the worst floods in its history.

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Rousseff, who was Brazilian president during the period 2011-2016, detailed that the funds to be delivered by the bank of the bloc formerly formed by his country, Russia, India, China and South Africa, will help to quickly rebuild urban infrastructure such as hospitals, schools and the sanitation system, as well as investing in climate disaster prevention by the federal state.

Brazilians can count on the NDB at this difficult time. «We want to help people rebuild their lives,» he said. After insisting on personal and NDB solidarity «with the suffering population», he appreciated that «all measures must be taken so that this tragedy is never repeated».

He added that he held talks with President Luiz Inácio Lula da Silva and the regional governor, Eduardo Leite, to gain understanding about the magnitude of the damage and identify various ways to provide financial aid.

NDB President Dilma Rousseff has just allocated USD $1.15 billion in emergency funding to flood-ravaged Rio Grande do Sul for urban infrastructure repairs, sanitation, environmental protection and disaster prevention – nearly 10x the value offered by the World Bank. pic.twitter.com/M7VmbKYWVG

— BrianMier (@BrianMteleSUR)
May 14, 2024

Persistent rains and severe flooding have so far resulted in 148 deaths, 127 missing and 806 injured, and affected 2.12 million people. Significant destruction of infrastructure and housing is reported, as well as large losses in agricultural and industrial production.

According to local media, the financing will be transferred through Brazilian public banks such as the National Economic and Social Development Bank (BNDES), Banco do Brasil (BB) and the Regional Development Bank of the Far South (BRDE).

It is expected to allocate 250 million for small and medium-sized enterprises, and a similar amount for environmental protection and disaster prevention, infrastructure, and water and wastewater treatment.

Among other destinations, 200 million will be available for direct use in infrastructure works, urban roads, bridges and roads. Agricultural infrastructure, storage and logistics infrastructure projects would receive $100 million.

Another 295 million, in the process of final approval, will be used for urban and rural development, basic sanitation and social infrastructure. 20 million would be allocated for development, urban mobility and water projects.

The NDB was created in December 2014 and is run by Rousseff since March 2023. Last August, during a high-level summit held in South Africa, the Brics decided to expand, so as of last January Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates were incorporated.

During that meeting Argentina’s membership was also approved, but it was suspended by neoliberal president Javier Milei.

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