Pernambuco Secures $32.8M Loan from IDB to Digitally Transform Its Judiciary

This project will benefit approximately 2.6 million people served by the Pernambuco state court system, including more than 180,000 users of the Electronic Judicial Records System.

The Inter-American Development Bank (IDB) has approved a $32.8 million loan to the Brazilian state of Pernambuco to support the digital transformation of its judiciary. The initiative aims to streamline public services, improving efficiency and reducing costs for citizens while enhancing access to justice.

This project will benefit approximately 2.6 million people served by the Pernambuco state court system, including more than 180,000 users of the Electronic Judicial Records System. The reforms are expected to provide faster and more affordable services, significantly reducing administrative delays and costs. Additionally, the project will provide digital skills training to 8,000 government employees and 500 judges, boosting the overall digital competence of the judicial system.

The project consists of two main components. The first focuses on digitally transforming services within the judicial system, which includes improvements to the management of the Electronic Judicial Records System, automation of procedures, and the introduction of digital services to prevent and address gender-based violence against women and LGBTQ+ individuals. The second component focuses on strengthening the judicial system’s capacity by deploying cloud technology, enhancing cybersecurity protocols, ensuring compliance with the General Data Protection Law (LGPD), and implementing strategic digital solutions for preventing harassment and discrimination.

By accelerating the adoption of new technologies, the project is expected to deliver significant savings, reducing the length of legal proceedings and improving overall efficiency. It is estimated that Pernambuco will save approximately $18.5 million by 2028 through digitalization. Additionally, the project is set to increase the average number of cases adjudicated per judge by 20% and improve the efficiency of the court system’s budget by 12%.

This project marks the eighth operation approved under the IDB’s 2021 Conditional Credit Line for Investment Projects, known as Brasil Mais Digital, which aims to enhance digital transformation across various sectors in Brazil. The loan also includes a local contribution of $8.2 million, with a repayment term of 24.5 years, a six-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).

Through this initiative, Pernambuco is positioning itself as a leader in judicial modernization, setting a precedent for other Brazilian states and countries in the region to follow in terms of digital government transformation.