Brazil creates US$1bn fund to recover Rio Grande do Sul infrastructure

Brazil created a 6.5bn-real (US$1.05bn) infrastructure recovery and climate impact mitigation fund for Rio Grande do Sul state.

"Most of the funds, in the order of 2.5bn reais, will be invested in dyke work, as well as damping basins and pump houses in the municipalities of Porto Alegre and Alvorada (Arroio Feijó). In addition, 1.9bn reais will be invested in dyke works in the Rio dos Sinos basin region – which will benefit the cities of Canoas, Esteio, Sapucaia do Sul, Nova Santa Rita, Rolante, Novo Hamburgo, Campo Bom, São Leopoldo, Igrejinha and Três Coroas," the government said in a press release.

The proceeds will also support recovery works in the Gravataí basin (450mn reais), Eldorado do Sul (531mn reais), Porto Alegre metropolitan region (502mn reais), São Leopoldo (69.3mn reais) and the municipalities of the Caí basin (14.5mn reais).

The fund will also include 533mn reais for selected projects.

In May, Rio Grande do Sul was affected by heavy rainfall, which left much of the state flooded for weeks and infrastructure damaged.

Since then, the federal government has sought to help with repairs and it advanced projects to mitigate similar risks.