World Bank Approves $150M Loan to Upgrade Bahia’s Road Infrastructure, Benefiting 2.35 Million People

Brazil's road infrastructure has historically suffered from reactive maintenance approaches, leading to poor road conditions and high economic costs.

The World Bank Board of Directors has approved a $150 million loan to upgrade road infrastructure in Bahia, Brazil, benefiting 2.35 million people. This investment is part of a broader $1.662 billion program aimed at improving road management nationwide to enhance transportation, accessibility, and environmental sustainability.

The project will introduce performance-based contracts for road rehabilitation and maintenance, focusing on road safety and climate resilience. Additionally, the initiative will support the construction of city by-passes along key transport corridors and improve access to rural roads. This is expected to reduce transportation costs, improve safety, and lower carbon emissions.

Brazil's road infrastructure has historically suffered from reactive maintenance approaches, leading to poor road conditions and high economic costs. With two-thirds of the country’s inland freight reliant on roads, inefficient asset management has hampered Brazil's competitiveness.

This larger program aims to shift the focus toward proactive infrastructure management, involving private sector expertise to implement innovative practices. Aligned with the World Bank Group’s Green, Resilient, and Inclusive Development agenda, the initiative is expected to reduce greenhouse gas emissions, boost climate resilience, and benefit nearly 7 million people across various Brazilian states.

Governor of Bahia, Jerônimo Rodrigues, highlighted the state's long-standing commitment to improving road infrastructure, noting that the success of previous World Bank-financed projects, PREMAR 1 and 2, paved the way for this new, innovative program. "PRO RODOVIAS is an evolution of those efforts, aimed at driving development and improving living conditions throughout Bahia," he said.

Johannes Zutt, World Bank’s Country Director for Brazil, emphasized the importance of this project in addressing Brazil’s infrastructure challenges, enhancing road safety, and fostering long-term climate resilience, marking a significant step towards sustainable development in the country.