The Inter-American Development Bank (IDB) has approved a US$248.3 million financing program for the Municipality of São Paulo. This financial support aims to support the electrification of the public bus fleet, a key measure to improve environmental sustainability in the largest city in Latin America and the Caribbean.

The project is part of a plan already underway by the municipality, which includes:

• 527 electric buses are already in operation.
• A goal of 2,200 electric units for the public transportation system.

The IDB granted the loan under the Results-Based Loan modality, meaning disbursement is conditioned on the achievement of specific goals.

Direct and indirect beneficiaries:

• 7 million public transportation users in São Paulo.
• 11.5 million inhabitants of the municipality.
• 21.5 million people in the Metropolitan Region.

In addition, a particularly positive impact is expected on vulnerable groups, such as low-income people and women, who make up a large portion of the system’s users.

Part of the financing will be allocated to improve the management of the bus system, led by SPTrans, the joint venture that manages public transportation in São Paulo.

The project seeks to reduce diesel use, which currently exceeds 400 million liters annually, and improve the efficiency, punctuality, and cleanliness of urban transportation. This transformation is not only environmental but also social, as more efficient transportation can contribute to reducing inequalities in the city.

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