The City of Rio de Janeiro is to install energy efficient LEDs.
The IFC, part of the World Bank Group, is to help the government develop a Public Private Partnership (PPP) to upgrade nearly 425,000 lights.
The project will help Rio reduce its energy bills as well as emissions and provide improved visibility for people and cars.
IFC says it has the potential to be the largest public lighting PPP in Latin America.
The project is one of the first initiatives under a Memorandum of Understanding (MoU) between the World Bank Group and Rio’s municipality earlier this year.
Luciano Cordeiro, Rio de Janeiro’s Under Secretary for Strategic Projects said: “The city already spends nearly $60 million (£46m) a year on energy to run its street lights; that is 60% higher than New York spends, even though Rio’s population is smaller.
“With proper technology and maintenance, this bill could be potentially cut in half, providing more revenue for the city to invest on other priorities, such as health, housing and education.”