World Bank Backs Fortaleza with $177 Million for Urban Growth

The initiative includes the implementation of a new master plan, the creation of a Climate Risk Observatory, a Municipal Climate Change Policy, expanded social housing and a large-scale urban greening programme.

The World Bank Group is supporting Brazil's fourth-largest city, Fortaleza, with a $177 million loan to strengthen public finances, improve urban services and increase resilience to climate-related challenges. The financing, provided through the International Bank for Reconstruction and Development (IBRD), is expected to help create better conditions for investment, employment and economic growth for the city's more than 2.4 million residents. The programme combines financial reforms with sustainable urban development measures, giving the municipality greater capacity to invest in infrastructure while improving the quality of life across the city.

Greener neighbourhoods and better housing

A major part of the project focuses on sustainable urban planning centred around public transport and climate resilience. The initiative includes the implementation of a new master plan, the creation of a Climate Risk Observatory, a Municipal Climate Change Policy, expanded social housing and a large-scale urban greening programme.

By January 2028, Fortaleza plans to increase landscapes under conservation or sustainable management from 7,628 hectares to more than 10,586 hectares, plant 250,000 trees in urban heat hotspots, reserve 237 hectares for social housing, improve 1,500 homes and issue 3,000 land titles, with at least 60% allocated to women. These measures are expected to make neighbourhoods greener, improve access to affordable housing and strengthen climate resilience across the city.

Financial reforms to unlock investment

The operation also introduces reforms to improve Fortaleza's financial management. The municipality will update property tax records and valuations, restructure street lighting and public security fees to attract private investment, and introduce automatic expenditure controls to protect funding for essential public projects.

These changes are expected to attract at least R$40 million in private investment for street lighting and traffic infrastructure while increasing the city's current savings ratio from 2.45% to 5%. Stronger fiscal management will also allow Fortaleza to restructure existing debt, generating approximately US$26 million in savings that can be redirected toward future public investments.

Long-term vision for sustainable development

World Bank Country Director for Brazil Cécile Fruman said Fortaleza has the potential to become a leading example of sustainable urban development in northeastern Brazil. She noted that the project will help the city convert its ambitions into practical results through stronger public finances, improved services, greener communities and better opportunities for residents, particularly those who have historically faced greater social and economic challenges.

With healthier finances and continued investment in climate resilience and urban infrastructure, Fortaleza is expected to strengthen public services, attract new investment and improve living conditions for its growing population in the years ahead.

Tags: World Bank, IBRD, Brazil, Fortaleza, Urban Development, Climate Resilience, Public Finance, Sustainable Cities, Social Housing, Urban Greening, Infrastructure, Climate Change, Public Services, Economic Development