Project will benefit more than 250,000 people of the state’s remote communities
WASHINGTON, January 29 2016 – The Board of Directors of the World Bank approved a US$200 million loan to the State of Bahia in Northeast Brazil to increase the effective use of the state’s road infrastructure as a way to stimulate economic growth and reduce poverty. The second phase of the Bahia Road Rehabilitation and Maintenance Project will directly benefit more than 250,000 people in remote state communities, as well as 60,000 daily users of the state’s road network.
"Thanks to the financial support from the World Bank, the government of Bahia has invested heavily over the past nine years in the state’s highways infrastructure, expanding the road network as well as ensuring the maintenance of those already existing,” said Rui Costa, Governor of Bahia. “Now, we need to continue to improve the condition of our roads, since they are the main means of transportation in the state and an important regional development factor. We therefore welcome our partnership with the World Bank, which is key in implementing this important project for the rural communities of our state.”
More than 90 percent of all goods produced in the State of Bahia are transported by road, bringing high logistic costs and contributing to high pollution levels due to the poor condition of the road network. The human toll is also large. It is estimated that more than 3,500 people died on the state’s roads in 2015.
Beyond its more than 10,000km of state highways, Bahia’s road network also includes about 120,000km of rural municipal roads that serve the state’s more remote areas. This network links small and poor farmers to both markets and social services, and is thus fundamental for their wellbeing. The project will upgrade these roads, damaged due to heavy truck traffic and lack of maintenance, in order to give rural producers better access to the state’s main highway network.
"We are pleased to support the state’s long-term development by improving the quality of its road infrastructure,” explained Martin Raiser, World Bank Director for Brazil. “By reducing the cost of doing business in remote rural areas, the project will have significant effects on job creation and income, as well as contribute to better access to services for the rural population.”
Among the outcomes supported by the project are:
- Improving the condition of more than 2,300km of the state’s roads;
- Improving the access of rural communities to the road infrastructure by improving critical points on rural roads;
- Reducing the number of fatalities on selected road corridors;
- Strengthening the administration of road asset management, transport and logistics planning, and investment impact assessment.
This Investment Project Financing from the International Bank for Reconstruction and Development (IBRD) to the State of Bahia has a final maturity of 35 years, including a 4.5 year grace period and is guaranteed by the Federative Republic of Brazil.
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