Monday, October 26, 2009
Mexico:
US$1.5 Billion to Stimulate Green Growth
The World
Bank
The World Bank Board of Executive Directors approved
today a US$1.5 billion loan aimed to develop public policies to support the stimulus of the economy while strengthening the
framework for long-term sustainable growth. In order to achieve this, regulatory, monitoring and financial frameworks will
be developed for low greenhouse emissions evolution of the urban transport and energy sectors, key to generate a low carbon
growth model.
These implementations will try to create a favorable
investment framework in public and private sectors in the areas of clean and renewable energy, massive transport systems and
associated technologies. These investments will tend to stimulate the economy in the short term, while improvements in urban
mobility and energy efficiency will increase the perspective for productive growth in the medium term.
“The World Bank’s support and close collaboration
will help the government live up to its public commitment to reduce emissions in the country. Besides having ratified the
United Nation’s Framework Convention on Climate Change and the Kyoto Protocol, our country is one of the first developing
countries to commit to a specific reduction of emissions through the use of clean and efficient energies,” said
Juan Rafael Elvira Quezada, Mexico’s Secretary of Environment and Natural Resources.
The three Policy Areas in which the Bank’s support
will be centered on are:
· A comprehensive
policy framework for the reduction of emissions across sectors;
· Enabling
and monitoring framework for the reduction of emissions in urban transport and energy; and,
· Establishment
of financing mechanisms to facilitate the reduction of emissions in transport and energy.
"This loan supports the Government of Mexico as it
implements a uniquely forward-looking set of policies. We recognize and value
that even in the face of a difficult global economic situation the government set its efforts to reduce emissions in the long
term and to reach sustainable growth”, said Gloria Grandolini, World Bank Country Director for Mexico and
Colombia.
The project will support the Special Climate Change
Program (PECC) approved this year by the Mexican government. The PECC promotes sustainable sectorial policies as well as initiatives
and regulations aimed to reduce greenhouse emission gases. For example, it will support government initiatives -implemented
in response to the economic crisis - to invest in infrastructure, backed by policies that will consolidate the sustainable
growth of the Mexican economy.
The World Bank recognizes that ensuring environmental
sustainability and strengthening Mexican institutions in order to reach these objectives on inter sectorial levels is essential
for the country’s development. Facing this challenge through measures in mitigation, as the improvements in the clean
urban transport services propose, in order to reach greater levels of energy efficiency and promote the use of renewable energy
will have positive effects on poverty and inequality, as they will increase accessibility and availability of these services.
At the same time, these actions will have a positive effect on the country’s competitiveness, particularly in the energy
sector.
The entity in charge of implementing the loan is the
Ministry of Finance and Public Credit, who has designated the National Savings and Financial Services Bank (BANSEFI) as the
financial agent. It is a single tranche Development policy Loan with a variable-spread loan (6 month LIBOR), to be paid in
17 years with a 16.5 year grace period. A 0.25% Font end Fee (disbursement fee)
has been agreed. The project is expected to be completed by May 2011 and will be supported by a wide array of technical assistance
support.
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The World Bank, Washington, DC, October 20, 2009
