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Summary of proposed guarantee

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.


Project name
São Paulo Sustainable Transport
Project ID
Fiscal year
Guarantee holder
Banco Santander S.A.
Investor country
Host country
Environmental category
Date SPG disclosed
January 31, 2014
Project Board date
March 17, 2014
Gross exposure
 $450.0 million
Project type
Strategic priority area
Complex Project
ESRS, PDF version, January 31, 2014

Project description

This summary covers an investment by Banco Santander S.A in the São Paulo Sustainable Transport project in Brazil. The State of São Paulo issued a request for proposals on January 6, 2013 for the financing of US$300 million from commercial lenders to co-finance part of the project. The financing is to be covered by a MIGA guarantee for up to $450 million for a period of up to 12 years against the risk of non-honoring of financial obligations.This summary was updated on March 20, 2014 with the name and provenance of the guarantee holder.

The project consists of investments by the State of São Paulo in sustainable transportation infrastructure and related activities. The total project willbe financed with a $300-million World Bank loan, $129 million from the State of São Paulo’s own funds, and the financing $300 million here described from a commercial bank (or a syndicate of banks), which is to be covered by a MIGA guarantee.

The financing covered by the MIGA guarantee will support the rehabilitation of about 800 kilometers of roads selected for their proximity and connectivity to inland waterway and railways, reconstruction of two bridges to enhance the navigability of the Tiete inland waterway corridor complex, and other works to improve road safety. The objective of the project is to improve the state’s transport and logistics efficiency and safety while enhancing its capacity in environmental and disaster risk management.

Environmental Categorization

The project is a category B under MIGA’s Policy on Social and Environmental Sustainability. Click here to view the Environmental and Social Review Summary.

Development Impact

The State of São Paulo’s current transport and logistics capacity is insufficient to match the state’s current and future needs and is recognized as a bottleneck for regional and national logistics. The proposed project will improve efficiency and safety while lowering the carbon footprint of moving goods and people in the state.

Due to increased mobility, indirect benefits will accrue through increased employment and wages across a wider geographical area. As a result, the project will help reduce disparities across the state and foster a more balanced distribution of its development growth.

The proposed project is in line with the World Bank Group’s Country Partnership Strategy for Brazil as it promotes regional economic development through improved infrastructure investments and enhances climatic resilience.

MIGA’s participation in the project is also aligned with the Agency’s commitment to support complex projects.

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