Brazilian State of Bahía to Advance Digital Transformation with IDB Support

The State of Bahía will receive $42 million in financing for digital transformation from the Inter-American Development Bank (IDB) in order to lower the cost of public services for its citizens and boost their satisfaction. The Bahía Mais Digital program will expand the range and use of digital public services, make them more inclusive, and streamline the government's work in general by digitalizing it.

The operation will fund the design of strategies for e-government, data, and cybersecurity. The program will also modernize the state's digital services platform and payment portal, including features for universal access for people with disabilities. It will create and implement a digital literacy strategy for the population, with a focus on women. The operation also includes initiatives for expanding connectivity infrastructure for free public internet service in more remote parts of the state, where most of the state's Afro-descendent and indigenous people live.

The digital transformation initiatives supported by the program should save society at least $21.4 million over its five years of implementation, while local governments should save at least $41.7 million.

An IDB study from 2020 found that most of the population of Bahía (87.3%) are ready to use more and better digital services, although 43% said they had never heard of or used these services.

The loan, which has been approved by the Executive Board of Directors of the IDB, will benefit the 14 million inhabitants of Bahía, who will save time and money by using digital public services. It will also give over 140,000 government employees the opportunity to enhance their digital skills. Expanded internet service could reach 300,000 people living in more remote parts of the state, especially the most vulnerable groups.

This is the seventh loan approved by the IDB under the Brasil Mais Digital Conditional Credit Line for Investment Projects (CCLIP), which was launched in 2021.

The loan for Bahía has 24.5-year repayment term, a six-year grace period, and an interest rate based on the SOFR. The local government will contribute an additional $10.5 million in financing.