WASHINGTON DC, July 24th, 2023 - The World Bank Board of Directors approved today two projects in the Northern Brazilian states of Acre and Tocantins that will help improve efficiency in the management of public resources and provide better services to its citizens.
The two operations –US$ 50 million for Tocantins and US$40 million for Acre — come under the Progestão Program, which seeks to help Brazilian states improve their long-term fiscal sustainability, implement administrative reforms, improve asset management, and rationalize public spending. The Program is available to all Brazilian states regardless of their fiscal situation.
“Ensuring efficiency in management and public spending is not an option, it is a commitment. This is why we are going to invest in technology and in improving Public Administration processes. Each action, project or initiative will be meticulously analyzed and planned, with the purpose of guaranteeing maximum returns for society,” said Acre Governor, Gladson Cameli. “In Progestão we saw the opportunity to innovate, improve processes and mitigate risks and waste, always with the aim of improving people's lives. And for that we rely on the engagement of all managers and public servants in the implementation of the project.”
“This investment is fully aligned with our government's proposal to modernize the state's structure. It carries out a comprehensive survey of the needs of administrative and fiscal management, in addition to meeting the demands of the Tocantins population in an extremely satisfactory manner, providing high quality services", affirmed Tocantins governor, Wanderlei Barbosa. “Our partnership with the World Bank is essential to achieve these goals, as we aim to improve the efficiency of public administration significantly”.
Progestão Acre: Public Sector Management Efficiency Project and Progestão Tocantins: Public Sector Management Efficiency Project are the third and fourth projects in the Progestão series. Previously, the World Bank approved Progestão projects for Alagoas (July 2022) and Mato Grosso (August 2022).
Activities supported by the program will help improve workforce planning to reduce the wage bill and payroll irregularities; accelerate public procurement; control public investment overruns; and increase the share of real estate with complete legal documentation. The projects are expected to provide 59,000 state employees in Tocantins and 40,000 in Acre with access to more efficient and effective systems for managing public finances, while citizens and businesses will benefit indirectly from improvements in public sector productivity and transparency.
“Acre and Tocantins, like other Brazilian states, are committed to strengthening their core government management functions and systems, so that public services are delivered more efficiently and sustainably,” said Johannes Zutt, World Bank Country Director for Brazil. “Through the Progestao projects, the World Bank is helping these states to strengthen and modernize their public sector, so that they are better able to overcome their development challenges and provide a better future to their citizens.”
Both loans have a maturity of 19 years including a grace period of 5 years.