IDB Approves $243m to Bring More Reliable Power to Brazil’s Santa Catarina

The Global Multiple Works Program (GOM) will support improvements to the state’s electricity distribution system, strengthening its ability to provide reliable service and withstand disruptions, with benefits expected to reach 7.3 million people.

More dependable electricity for homes, businesses and rural communities is at the centre of a $243 million financing package approved by the Inter-American Development Bank's (IDB) Board of Executive Directors for Santa Catarina, Brazil. The Global Multiple Works Program (GOM) will support improvements to the state's electricity distribution system, strengthening its ability to provide reliable service and withstand disruptions, with benefits expected to reach 7.3 million people.

The investment will support Centrais Elétricas de Santa Catarina – Distribuição S.A. (CELESC-D), the main state-controlled electricity distributor, through network upgrades, modern equipment and stronger technical capabilities. Rural access forms a central part of the program, giving communities distribution infrastructure capable of supporting both household needs and the development of agro-industrial activities. IDB's announcement.

Stronger Rural Networks to Support Homes and Livelihoods

Among the beneficiaries are 11,743 rural households that will gain access to distribution networks capable of supporting agro-industrial development, connecting the electricity investment with the productive activities that help sustain rural communities. For these households, the program's value extends beyond access to power, with stronger networks providing infrastructure suited to the demands of local economic activity.

Across CELESC-D's service area, the planned improvements will increase distribution capacity and strengthen reliability, helping the company serve residents and businesses through a more resilient system. The financing covers physical infrastructure and improvements within the utility, recognising that dependable electricity requires capable networks, modern operating tools and the technical expertise to manage them.

New Substations and Digital Tools Modernise Distribution

Construction of new substations and distribution lines will form a major part of the investment, with existing substations receiving upgrades to improve the network's capacity and operation. The program includes energy storage systems, mobile substations and smart meters, bringing additional operational flexibility and digital technology into CELESC-D's distribution system.

Equipment for a new integrated control and operations centre will support the utility's management of the network, placing modern operating infrastructure alongside investments in lines and substations. Technical studies, supervision of construction works and activities to strengthen operational capabilities will help CELESC-D plan and deliver the improvements, with institutional development supporting the company's ability to manage the upgraded system over the longer term.

Preparing for Extreme Events and Completing Approval Steps

The program will fund operational protocols for responding to extreme events, giving CELESC-D clearer procedures for managing disruptions when its network comes under pressure. These preparations link infrastructure upgrades to the people and processes needed to respond effectively, supporting the broader goal of more resilient electricity service for Santa Catarina's residents.

The IDB financing carries a 24.5-year repayment term, a six-year grace period and an interest rate based on the Secured Overnight Financing Rate, known as SOFR. A local counterpart contribution of $62.6 million brings the combined funding to $305.6 million, supporting a package that covers network construction, technology, operational equipment and technical strengthening.

Approval by the IDB Board marks a financing milestone, with implementation dependent on the legal and administrative processes required in Brazil. Completion of those steps will allow the program to move into delivery, turning the approved investment into stronger distribution infrastructure and more reliable electricity for the households and businesses it is intended to serve.