While the economy of Mato Grosso do Sul relies substantially on agriculture, two-thirds of its agricultural land is underutilized, in part because of poor accessibility. Several regions of agricultural production with a resident population were either poorly served by transport or inaccessible part of the year. The condition of the state’s transport network caused losses in agro-industrial production, especially in the wet seasons, and the deterioration of the paved network exacerbated the problem of accessibility. Furthermore, regional inequality presented a challenge, as wealth was mainly concentrated within a few of the cities in the state.
To address these challenges, the Brazil Mato Grosso do Sul State Road Transport Project was designed to respond to the government’s need for financing and its desire to build on the World Bank’s accumulated knowledge from recent road management experiences in Brazil and globally. Additionally, financing was intended to rehabilitate existing selected roads through the introduction of a new results-based contracting method for rehabilitation and or/maintenance, known as CREMA.
Finally, the project aimed to strengthen the government’s capacity to improve public-administration efficiency in planning and managing infrastructure programs, modernizing the environmental management system for assessing infrastructure projects, and consolidating the state’s capacity to attract private-sector participation in infrastructure.