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

26 July 2012 – Washington, DC – The World Bank Board of Directors has approved 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 (pictured left). “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.

For more about the Tocantins Integrated Sustainable Regional Development Project, go to http://www.worldbank.org/projects/P121495/tocantins-integrated-sustainable-regional-development?lang=en.

The World Bank has provided financing for more than 11,000 projects in over 100 countries since 1947.  To learn more about past and current IBRD projects, visit http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/0,,contentMDK:21790401~menuPK:5119395~pagePK:41367~piPK:51533~theSitePK:40941,00.html

The World Bank is a source of financial and technical assistance to developing countries around the world. It consists of two unique development institutions owned by 185 member countries—the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). Each institution plays a different but supportive role in the World Bank’s mission of global poverty reduction and the improvement of living standards. The IBRD focuses on middle income and creditworthy poor countries, while IDA focuses on the poorest countries. Together they provide low-interest loans, interest-free credit and grants to developing countries for education, health, infrastructure, communications and many other purposes.

Established in 1944 as the original institution of the World Bank Group, IBRD is structured like a cooperative that is owned and operated for the benefit of its 185 member countries.  Established in 1960, the IDA aims to reduce poverty by providing interest-free credits and grants for programs that boost economic growth, reduce inequalities and improve people’s living conditions.  For more information, visit www.worldbank.org.

Source: World Bank