US$ 100 m for Brazil’s roads
25 April 2008
The World Bank has approved a US$ 100 million loan to the State of Bahia in Northeast Brazil in a bid to “increase the effective use of the State’s road infrastructure as a way to stimulate economic growth”.
In a statement, John Briscoe, World Bank director for Brazil, said the Bahia Integrated State Highway Management Project has been designed to “reduce the cost of doing business and increase the State’s productivity [which] will have significant effects on job creation and income, as well as contribute to sustainable growth and poverty reduction.”
The loans are needed because increased traffic, coupled with a lack of repairs have led to deterioration of the networks throughout the Bahia.
The bulk of the money will be spent on rehabilitation, resurfacing, safety and environmental improvements, which will cover about 2000 km, or 15%, of Bahia’s paved road network.
The US$ 100 million fixed-spread loan has a repayment period of 17 years, including five years of grace.