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WB/Brazil: Project to Benefit 300,000 in the State of Tocantins

July 26, 2012

Program will enhance competitiveness, social integration and environmental sustainability

WASHINGTON, July 26 2012 - The World Bank Board of Directors approved today a US$300 million loan to the State of Tocantins, in northern Brazil. Aimed at fostering local and state development through improved transport and enhanced public service delivery, the Tocantins Integrated Sustainable Regional Development Project will directly benefit 300,000 people in 72 municipalities.

The State of Tocantins is home to 1.3 million people, including vulnerable populations – 13,000 indigenous people and 7,500 people in Quilombos, slave descendent communities.  It also enjoys unique environmental assets, including large preserved areas. Though the state economy has registered steadily higher growth rates, it is still ranked 16th among all Brazilian states in income per capita. 

“Tocantins is a young and promising state, with a lot of opportunities to economically grow and become self-sustainable,” said José Wilson Siqueira Campos, governor of the State of Tocantins. “Improving the transport system is crucial to create new job opportunities, to improve producers’ access to a stronger national and international market and to facilitate public students’ access to schools. The implementation of management for results will make public administration more efficient and will bring further development to the state, offering a better quality of life for those who live here. "

The State has consistently prioritized its modernization through successive four-year plans. Their aim has been to foster sustainable development and to improve quality of life for its citizens. Aligned with this long-term strategy, the state’s new four-year plan, PPA (2012-2015), seeks to strengthen competitiveness for economic growth while ensuring social inclusiveness and environmental sustainability. 

“Boosting State integration will enable a faster flow of goods to national and international markets, while ensuring environmental sustainability and social inclusiveness,” said Deborah L. Wetzel, World Bank director for Brazil. “Improving transport in an integrated fashion, from local to main trunk roads and multimodal transport corridors, will give better access to markets, while fostering accessibility to employment opportunities as well as bringing more education and services for the rural populations.”

Some of the Project’s objectives are:

  • Improved accessibility and transport conditions on municipal and state roads in an articulated fashion with state and national transport corridors.
  • Improved transport management.
  • Modernized state administration.
  • Local and regional development.
  • Improved environmental management.
  • Improved quality and relevance in the education system.

This Investment Loan from the International Bank for Reconstruction and Development (IBRD) to the State of Tocantins is guaranteed by the Federative Republic of Brazil and has a final maturity of 24,5 years, with a five year grace period.

Media Contacts
In Brasília
Paula Teklenburg
Tel : (+55 61) 3329-1059
In Washington
Denise Marinho
Tel : (+1 202) 473-7587