WASHINGTON, DC, February 27, 2026 - The World Bank's Board of Directors approved a new project in the State of Tocantins, in Northern Brazil, to improve road connectivity, strengthen family farming, and promote inclusive, sustainable tourism, especially in rural and vulnerable communities, supporting the creation of more and better jobs in the state.
The package includes a US$120 million loan from the World Bank, complemented by US$30 million in counterpart financing from the State of Tocantins and an estimated US$7.7 million in private capital mobilization. By combining investments in transport, agriculture, and tourism, the project aims to expand economic opportunities while building climate resilience.
"This project consolidates a partnership of more than 20 years with the World Bank and marks a new chapter in the state's development. Beyond investments in road infrastructure, including highway improvements and the paved connection to Lizarda, the project expands its reach by strengthening family farming and inclusive tourism. This initiative will generate jobs and income, promote the productive inclusion of women, youth, and quilombola communities, and drive sustainable growth across all regions of Tocantins," stated Wanderlei Barbosa, Governor of Tocantins.
"Tocantins has strong potential to create quality jobs while protecting its natural and productive assets," said Cécile Fruman, World Bank Country Director for Brazil. "By linking safer and more resilient roads with climate-smart agriculture and inclusive tourism, this project supports a development model that expands opportunities for women, youth, family farmers, and traditional communities, while strengthening the state's long-term competitiveness."
Project highlights
The main pillars of action include:
- Roads: The project will rehabilitate and maintain 746 km of paved state roads under performance-based contracts. It will also finance targeted road safety improvements and support the preparation of Tocantins' first road public-private partnerships (PPPs).
- Family farming: Expanded rural extension services and climate-smart agriculture support, along with matching grants and productive alliances for 12,000 family farmers, including women-led, youth, Indigenous, and Quilombola producers.
- Tourism: Investments in the Jalapão region to strengthen planning and small-scale infrastructure, and support micro businesses and Quilombola communities through training, mentoring, and competitive grants.
- Project management: Implementation, monitoring and evaluation, and fiduciary and environmental and social risk management coordinated by the State Secretariat for Planning and Budget (SEPLAN).
The project will be implemented over eight years and is expected to create thousands of direct and indirect jobs across transport, agriculture, and tourism, while improving access to markets and services for rural populations across Tocantins.
Website: www.bancomundial.org.br
