São Paulo Metro Line 4
JBIC signed an untied loan agreement totaling 14.6 billion yen with the Government of the State of São Paulo, Brasil. The loan was cofinanced with a private financial institution, with JBIC providing a guarantee for the cofinanced portion, and finances the São Paulo Metro Line 4 Extension Project (Phase 2) undertaken by the Government of the State.
São Paulo, which is the center of the Brazilian economy, is plagued by such urban problems as chronic traffic congestion and air pollution. The project is designated by the federal government as one of the priority projects for developing transport infrastructure in Brazil’s largest metropolitan area. Since Japanese firms are participating in Metro operations in the project, JBIC’s financial support will help Japanese companies to maintain and strengthen their international competitiveness in the railway sector.
Looking forward to the FIFA World Cup in 2014 and the Olympic Games in 2016 in Rio de Janeiro, Brazil is planning to make various infrastructure investments. With its wealth of natural resources, large markets and geographical proximity to the United States and European markets, the country is attracting global attention. For Japanese businesses, too, its strategic importance has been increasing.