Bloomberg News

BNDES to Spend $93 Million on Brazil Cisterns to Combat Drought

July 04, 2013

Banco Nacional de Desenvolvimento Economico & Social, Brazil’s development bank, will spend 210 million reais ($93.4 million) building water tanks to help the nation’s northeast region combat the worst drought in 50 years.

The funds will go towards construction of 64,000 cisterns in eight states for low-income families by the middle of next year, the Rio de Janeiro-based state lender said in a statement on its website. BNDES will provide 126 million reais to install 12,000 tanks in a first phase.

More than 90 percent of the 1,133 municipalities in Brazil’s semi-arid region, which includes the whole northeast and the north of Minas Gerais state, have declared a state of emergency due to water shortages, according to the statement.

The program was created by the Ministry of Social Development & Fight Against Hunger and state-run oil company Petroleo Brasileiro SA (PBR:US), according to the statement.

The cisterns will include concrete tanks capable of storing 52,000 liters or pits lined with plastic, BNDES said.

To contact the reporter on this story: Stephan Nielsen in Sao Paulo at snielsen8@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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Companies Mentioned

  • PBR
    (Petroleo Brasileiro SA)
    • $13.2 USD
    • -0.80
    • -6.06%
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