Brazil Proactive, Safe, and Resilient Road Asset Management Program - State of Santa Catarina Project - Phase 3

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The road network in Santa Catarina is in a dire state, with 82 percent of its 6,289 kilometers of state highways being single-lane paved roads and 18 percent unpaved. The municipal road system adds another 66,607 kilometers, mostly unpaved. According to the National Confederation of Transport (CNT), about 74 percent of Santa Catarina's paved roads were in regular, poor, or very poor condition in 2023, despite their crucial role in mobility and logistics. This poor condition of roads significantly impacts the cost of operation of vehicles and logistics costs, with impacts on the competitiveness. Road safety is also impaired. In 2022, Brazil saw 33,894 traffic-related deaths, with Santa Catarina recording a death toll of 18 per 100,000 inhabitants, higher than the national average of 16 per 100,000. The economic cost of road safety issues is substantial, estimated to represent 5 percent of the country's annual GDP due to the management of traffic crashes, long-lasting injuries, and the loss of productivity, especially among young, educated individuals.To address these challenges, the Government of Santa Catarina, in collaboration with the World Bank, is developing a program focusing on improving access to sustainable, safe, and resilient transport in the State of Santa Catarina (SSC). This project, which corresponds to the Phase 3 of the MPA, has a total value of US$475 million, including US$300 million from the International Bank for Reconstruction and Development (IBRD), US$75 million from SSC counterpart financing, and an expected US$100 million in private capital mobilization (PCM). The project will benefit about 1,262 kilometers of roads, where long-term CREMA contracts will be implemented organized into clusters for efficient management, to enhance road conditions, climate resilience and road safety. The project also aims to develop a Public-Private Partnership (PPP) program for roads, leveraging private sector expertise and finance. Additionally, the project seeks to reduce gender and racial disparities in employment within the transport and construction sectors, where women and minorities are underrepresented and face significant wage gaps. By promoting inclusive employment practices and supporting women's participation in engineering and technical roles, the project aims to address occupational segregation and improve economic opportunities for marginalized groups in Santa Catarina. These goals will be delivered through the following four components:- Component 1: Proactive Road Asset Management (US$435 million): This component will support long-term CREMA contracts for road design, rehabilitation, and maintenance. Subcomponent 1.1 covers approximately 1,034 km in selected SSC regions, with financing from the World Bank and SSC. Subcomponent 1.2 support structuring PPPs for 225 km of state roads, integrating road safety and climate resilience improvements.- Component 2: Institutional Strengthening (US$28.88 million): This component aims to enhance road asset management, green mobility, and social inclusion and gender through technical assistance, studies, training, and the acquisition of goods. It will build capacity in SIE-SC and other relevant entities, focusing on road infrastructure management, climate resilience, road safety, and green mobility in the Greater Florianopolis area. Social inclusion efforts will address gender and minority inclusion and improve accessibility.- Component 3: Safe Active Mobility Improvements (US$10 million): This component will pilot safe active mobility interventions in at least four SSC municipalities, focusing on pedestrian streets, accessible sidewalks, and safe cycleways. The goal is to improve road safety, accessibility, non-motorized transport, and climate resilience. Approximately 12 km of urban streets will benefit from these interventions.- Component 4: Project Management (US$8.37 million): This component supports project management, coordination, and implementation by providing necessary human capital to SIE-SC. It includes engaging consultants to facilitate document preparation, project implementation, and the Monitoring, Evaluation & Learning (MEL) agenda, covering technical, social, environmental, financial management, audits, monitoring and evaluation, and procurement.