US$ 300 million World Bank loan for Brazil's road network

The World Bank has approved a US$ 300 million loan for the Mato Grosso do Sul State Road Transport Project in Brazil s fast growing Center-West region.

The project will rehabilitate and surface about 1200 km of paved roads, contributing to improved population mobility and the "increased economic competitiveness" of Mato Grosso State, according to Eric Lancelot, World Bank project manager.

The project includes:

• State Road Rehabilitation and Surfacing rehabilitation of about 750 km and surfacing of nearly 450 km of State roads, including feeder roads, to improve connections between cities and regions located in the northeast and southern parts of the State.
  The first set of works will include rehabilitation of the MS-141, MS-145, MS-306, MS-377 and MS-276 highways. The first surfacing works will include highways MS-436, MS-306, MS-112 and MS-274.
• Institutional Strengthening to the State Administration provision of equipment, consulting and non-consulting services and training to improve management of public resources by the Environment, Science, Technology and Planning Secretariat (SEMAC); strengthening the Environmental Institute (IMASUL) environment management capacity; consolidate planning capacity in the transport sector; and consolidate the execution capacity in the road sector.

Located in the southern portion of the Brazil s fast growing Center-West region, Mato Grosso do Sul is one of Brazil s main agro-industrial centres. It is strategically located at the crossroads of international and national production corridors in South America.

Trade flows crossing it connect the Center-West region and the industrial South-eastern region with existing corridors to Bolivia and Paraguay, making the State a "gateway" between the Atlantic and Pacific coasts.

The State has a diversified transport matrix compared to the rest of the country, including rail, road, air transport and pipelines. However, the full use of its multi-modal transport potential has been hampered by the low density and deteriorating conditions of the road network, resulting in logistic bottlenecks and low access to the population, especially in the rainy season.