Exchange of Notes for Japanese ODA Loan to the Federative Republic of Brazil

July 1, 2011
Japanese

  1. On Friday, July 1, (Thursday, June 30 local time), Minister for Foreign Affairs Takeaki Matsumoto participated in a signing ceremony with H.E. Mr. Antonio de Aguiar Patriota, Minister of External Relations, for an exchange of notes extending 49.996 billion Japanese yen of Japanese ODA Loan, in Brasilia, the capital of Federative Republic of Brazil.

  2. Outline of the projects
    (1) Non Revenue Water Control Project in Sao Paulo State (33.584 billion Japanese yen)
    This is a project to improve the water-supply infrastructure (upgrade water supply and service pipes, update water meters, etc.) in Sao Paulo state where despite a population of approximately 40 million people, water resources are poor, in order to achieve efficient use of existing water resources.

    (2) Belem Metropolitan Trunk Bus System Project (16.412 billion Japanese yen)
    This is a project to implement improvements in the arterial bus system in the urban area of Belem in the north of Brazil, including the construction of bus lanes and new bus terminals, to ease congestion and control the emission of greenhouse gases.

  3. Terms and Conditions
    (1) Non Revenue Water Control Project in Sao Paulo State
    (a) Interest rate: 1.7% per annum (For consulting services, the interest rate will be minimal (0.01%))
    (b) Repayment period: 25 years (including 7-year grace period)
    (c) Procurement method: General untied

    (2) Belem Metropolitan Trunk Bus System Project
    (a) Interest rate: 0.5% per annum (Climate Change Japanese ODA Loan)
    (For consulting services, the interest rate will be minimal (0.01%))
    (b) Repayment period: 30 years (including 10-year grace period)
    (c) Procurement method: General untied

  4. The project described in Section 2. (2) above is a part of Japan's support for developing countries directed at dealing with climate change issues, up to 2012, which Japan announced in December 2009. While aiming at establishing a fair and effective international framework in which all major economies participate, and agreeing on ambitious targets by all major economies, Japan will continue to cooperate on climate change with Brazil.
    • (*This is a provisional translation. The above date denotes the date of the issue of the original press release in Japanese.)
(END)


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