WASHINGTON, DC, March 20, 2026 - The World Bank's Board of Directors approved a new operation that will enhance economic competitiveness and job creation in the State of Bahia, Brazil. The package will support a broad set of policy reforms to close persistent infrastructure gaps, promote the state's digital transformation, and position Bahia at the forefront of Brazil's energy transition, boosting direct and indirect job creation.
The operation includes a US$796 million loan from the World Bank. It is expected to benefit rural and urban residents across the state through reduced transport costs, improved commute times, safer and more reliable access to digital public services, improved rural electricity access, and expanded opportunities linked to clean energy industries.
Operation highlights
The main pillars of action include:
· Improving transport: Measures include integrated contracting for road works that incorporate climate risk considerations and leverage private capital and expertise, as well as support for new mobility policies and financing mechanisms to promote public transport. These reforms aim to improve connectivity to jobs and reduce commuting burdens on low-income families.
· Digital access: Measures include strengthening data security for digital public services and making remote access to public services safer and more efficient.
· Supporting new energy value chains and infrastructure: Establishing parameters for electric vehicle charging infrastructure, promoting low-carbon biofuels and biomethane, and expanding distributed renewable energy in rural areas, including communities on islands in the São Francisco River. These steps aim to leverage Bahia's strong clean energy base to promote new industries, generate direct and indirect employment, and attract private investment.
"Despite its sound fiscal performance, Bahia lags on economic competitiveness and faces persistent infrastructure gaps, ranking 18th among Brazil's 27 states on road quality and 23rd on electricity access," said Cécile Fruman, World Bank Country Director for Brazil. "The measures supported by this operation are expected to have a transformational impact on Bahia's economy, by boosting direct and indirect job creation, promoting private investment in the transport and energy sectors, and reducing costs for the state and its residents."
Website: www.bancomundial.org.br
