The World Bank has approved a new financing package for the Brazilian state of Mato Grosso do Sul, aiming to provide sustainable, safe, and climate-resilient transport to benefit 1.55 million people. The $200 million funding is part of the larger $2.5 billion Brazil Proactive, Safe and Resilient Road Asset Management Program, using a Multi-Phase Programmatic Approach (MPA) to enhance road asset management in Brazil.
In Mato Grosso do Sul, the project targets the rehabilitation and maintenance of 826 kilometers of essential roadways, improvements in road safety, gender inclusion promotion, and enhancement of climate resilience. This will be achieved through performance-based contracts (CREMA) and long-term public-private partnerships (PPPs).
Johannes Zutt, World Bank Country Director for Brazil, stated, “This project will help Mato Grosso do Sul ensure that its growing economy is supported by inclusive and reliable transport infrastructure. Safer, more climate-resilient roads will also unlock rural access, reduce emissions, and protect lives.”
Key initiatives of the project include maintaining over 800 kilometers of roads with climate adaptation features, improving road safety at hazardous spots near schools, mobilizing $100 million in private capital through a 35-year CREMA-PPP model, and enhancing institutional capacity and gender inclusion in road and transport sectors. Additionally, the project will integrate climate-resilient materials and emergency response plans to address environmental risks, especially in the Pantanal biome.
Mato Grosso do Sul plays a crucial role in Brazil's agribusiness and exports sector, necessitating improved logistics infrastructure. With over 65% of the state's road network unpaved and a road traffic fatality rate exceeding the national average, this investment is timely.
The project aligns with Brazil's climate adaptation and mitigation objectives, supporting the country's Nationally Determined Contributions under the Paris Agreement. It is also consistent with the World Bank’s Country Partnership Framework.
For more information, please refer to the World Bank's contact details and social media platforms.