Brazil Proactive, Safe, and Resilient Road Asset Management Program - State of Bahia

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Bahia is strategically located in Northeast Brazil and is the largest state in the region, with a population of a bit over 14 million people. The state has a diverse economy, including agriculture, manufacturing, and services, making it an important contributor to the Brazilian economy (around 4 percent of the Brazilian GDP). Investing in preserving its infrastructure, such as roads, bridges, and ports, will help to improve the efficiency and competitiveness of these industries by reducing transportation costs and increasing access to markets and services for its population.This project - as Phase 1 of the Brazil Pro-Roads MPA - will focus on improving rural access and preserving road infrastructure in a safe, sustainable and resilient manner. Managing road assets sustainably is important to ensure that transport remains safe and efficient. The state of Bahia has a large network of roads - 12,000 km of paved roads in the State Network, and maintaining this infrastructure is critical to ensure that people and goods can move around the state effectively. By investing in infrastructure maintenance and rehabilitation, it is possible to extend the lifespan of the roads, reducing the need for costly repairs and replacements in the future.The project will be the first phase of a large Federal and State Program (Multi-Programmatic Approach - MPA) that will cover a number of States in Brazil. The Program will consist of four main components that will support: (i) the transfer of responsibilities for road asset management of paved State roads to the private sector, with the subsequent improvement of climate resilience and road safety along the selected roads; the (ii) institutional strengthening of the State Secretary for the sustainable management of road assets; along with (iii) the improvement of road safety, climate resilience and all-season access to opportunities in selected areas, providing better connectivity to schools, markets, and health centers; together with (iv) the Project implementation support. In the first phase, the project will have four components as follows: Component 1 supports long-term performance-based road design, rehabilitation, and maintenance contracts throughout the State: The first subcomponent is to implement long-term Design-Build-Maintain 10-year contracts for rehabilitating and maintaining two important agro-logistical corridors in the center of Bahia - for a total of 350 km, and also provide 8 to 10 years of maintenance contracts to a pool of 650 km of roads that are in good condition based on performance-based indicators, which will become the model for the new maintenance contracts in the coming decades in the State The second subcomponent will structure three CREMA-PPP 20-year contracts for rehabilitating and maintaining the roads in the same format as the BA-052 in Bahia. Component 2 is the institutional strengthening with multiple studies and consultancies to support the capacity building of the State in the coming decade, with main focuses on safe and resilient road asset management, green mobility and logistics, and social inclusion and gender. Component 3 supports access to opportunities by improving climate resilience and road safety while removing critical bottlenecks in selected areas of the State. The first subcomponent will implement road bypasses in the Baixo Sul area, where there are many challenges in urban areas - namely Nazare, Valença, and Camamu - related to the risk of sea level rise, and road congestion, safety and pollution issues. However, those areas are situated in the Mata Atlantica biome, so a crucial balance between environmental protection and the social challenges in those low-income areas is necessary. The second subcomponent will improve road safety by improving non-motorized transport infrastructure along those selected municipalities, enhancing universal accessibility. And the third subcomponent will support rural roads connecting rural communities in Bahia which are located in remote areas that are difficult to access, especially during the rainy season when roads can become impassable. This factor makes it difficult for people in rural areas to access education, healthcare, and other basic services.Component 4 will provide technical support to the Project implementation. The selected regions of Bahia are mostly rural areas that face several unique challenges that contribute to high levels of poverty, including high climate change risks from projected sea level rise and increased volume of rain. One of the main challenges is a lack of all-weather road infrastructure, which the project will support, and also the lack of economic opportunities. Many people in rural areas rely on agriculture for their livelihoods, but the sector has limited potential for creating high-paying jobs. This can make it difficult for people in rural areas to earn a decent living and escape poverty. The project will promote social inclusion by providing better opportunities for the rural population in Bahia, who often face limited access to education, healthcare, and job opportunities, so will have activities to tackle those issues. Also, Gender activities are envisioned to improve access to job markets in the road sector. Finally, the use of Performance-based contracts will provide the State with an effective way to ensure that maintenance and rehabilitation activities are carried out in a timely and effective manner, while also providing incentives for contractors to meet specific performance targets. These contracts can be linked to road safety performance, as well as to other indicators of quality and resilience, such as pavement condition, drainage, and signage. By linking road safety performance to longer-term maintenance and rehabilitation contracts, Bahia Government will ensure that its road infrastructure is designed and maintained with safety in mind. This can contribute to a reduction in road accidents and fatalities, which are major public health concerns in the region. And, in addition, longer-term contracts that are structured as PPPs - as it is intended, will provide a range of benefits, including access to private sector expertise and resources, as well as greater flexibility in project design and implementation. This can help to ensure that road infrastructure is built and maintained, while also providing opportunities for private-sector investment and job creation.