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Projects

Project Brief

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
Light Servicos de Electricidade S.A.
Project ID
1737
Fiscal year
2001
Status
Not Active
Guarantee holder
Citibank, N.A.
Investor country
United States
Host country
Brazil
Sector
Power
Gross exposure
 $23.0 million
Project type
Non-SIP

A MIGA-guaranteed project is working to upgrade electricity services in power-strapped Brazil, providing safe, legal power connections throughout Rio de Janeiro, including in low-income communities. The $23 million guarantee went to a bank syndicate led by Citibank N.A., covering part of a loan to Light Servicos de Electricidade S.A. against transfer restriction and expropriation. The project is expected to improve transmission and distribution by establishing and upgrading power networks and installing transformers and meters.

The project calls for the supply of power to 176,000 additional households and 250 industrial customers. In coordination with the local government and NGOs, Light also has a special program (PRONAI) to upgrade conditions in low-income areas, where safety hazards such as electrocution are rife, and to provide essential services at an affordable cost. The recent power crisis has added a new urgency to the program, which in 2000 reached out to about 150,000 new low-income clients. By 2005, Light expects to be present in 728 slums and 594 low-income communities. For slum residents, the program provides a steady, safe source of power and helps document proof of residence, necessary for getting a telephone and establishing credit. Through the program, Light also works to increase both the quality and quantity of educational programs at the local level, through scholarships, training activities, and the donation of computers and hardware to local schools.

 
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