World Bank endorses major infrastructure initiative to boost road management in Bahia, Brazil

WASHINGTON, DC, September 10, 2024 - The World Bank Board of Directors has approved a new project to upgrade road infrastructure in the state of Bahia, Brazil, benefitting 2.35 million people.

This initial $150 million loan is part of a larger $1.662 billion program aimed at enhancing road infrastructure management nationwide to improve transportation conditions, access, and environmental sustainability.

The project will help implement performance-based contracts, for both road rehabilitation and maintenance, that also emphasize road safety and climate resilience. It will also support the construction of city by-passes along crucial transport corridors and the improvement of access to selected rural roads. This will help to reduce transport costs, improve safety, and lower carbon emissions.

Brazil's road infrastructure has suffered from a tendency to undertake reactive reconstruction instead of proactive maintenance, leading to subpar road conditions and high maintenance costs, despite significant budget allocations. As roads bear two-thirds of inland freight, this has resulted in high economic costs, impairing competitiveness. Inefficient road asset management combined with insufficient investment in infrastructure has also widened the infrastructure gap.

The wider $1.662 billion program seeks to address this situation by adopting a forward-thinking strategy for road infrastructure management, also involving the private sector's expertise and investment to introduce innovative and efficient management practices. This strategy aligns with the World Bank Group's Country Partnership Framework and supports the Green, Resilient, and Inclusive Development agenda. It is expected to reduce greenhouse gas emissions, enhance climate resilience, and benefit nearly 7 million people across various Brazilian states.

"We continue to work diligently, as we have been doing for nearly 20 years in our state, to improve the quality and safety of the roads in Bahia. This is about driving development and enhancing the living conditions of people in Bahia throughout our territory, from urban centers to the rural areas of each municipality. PRO RODOVIAS is an evolution of two previous road infrastructure programs executed in Bahia between 2007 and 2022, PREMAR 1 and PREMAR 2, financed by the World Bank. The success of these programs demonstrated the technical capability and commitment of the Government of Bahia to road infrastructure management in the state. This positive track record enabled Bahia to become the first Brazilian state to implement, in partnership with the World Bank, an even more complex, comprehensive, and innovative program: PRO RODOVIAS," stated Jerônimo Rodrigues, Governor of Bahia.

"The World Bank is proud to support Brazil's ambitious initiative to transform its road infrastructure. By focusing on proactive, safe, and resilient road asset management, we are not only enhancing transportation access and safety but also improving competitiveness and fostering long-term climate resilience," said Johannes Zutt, World Bank's Country Director for Brazil. "This project is a significant step towards addressing Brazil's infrastructure challenges and achieving sustainable development goals across the country."

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Contact details

Brasilia
Sidrônio Henrique
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Washington, DC
Yuri Szabo Yamashita
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