IDB in US$ 1.15 billion Brazil road loan

The Inter-American Development Bank (IDB) has approved a US$ 1.15 billion loan to support the construction of a 44 km section of the Mário Covas Rodoanel highway in São Paulo, Brazil.

The IDB funds will supplement federal and state financing for the total US$ 3 billion project, which will complete the 177 km road - one of the largest transportation infrastructure projects ever undertaken in Brazil.

The 44 km north section is expected to be completed in November 2014 and will link the edge of the east section - at the intersection with Presidente Dutra highway - with Raimundo Pereira de Magalhães Avenue, at the beginning of the west section.

There will also be interconnections to Guarulhos International Airport in Greater São Paulo, and the Fernão Dias highway.

IDB specialist and project team leader Vera Lucia Vicentini said the completion of the Mário Covas Rodoanel highway would help ease Greater São Paulo Region's serious congestion problems.

"With the north section of Rodoanel ready, a major portion of the heavy traffic going to the port of Santos, Mercosul and other regions of the country will no longer have to cross the city, therefore reducing congestion," Ms Vicentini said.