State of Pernambuco - Phase 7 of Brazil Proactive, Safe and Resilient Road Asset Management Program

pipeline

Prospective

The State of Pernambuco, located in Brazil’s Northeast, has a diverse economy anchored by industry, services, agribusiness, and a strategic logistics hub around the Recife–Suape axis. Despite improvements in connectivity and growth poles in the Metropolitan Region of Recife and the Suape Port–Industrial Complex, Pernambuco continues to face pronounced regional disparities—especially in the Agreste and Sertão—along with rural poverty, uneven access to family farming markets and tourism destinations, and rising vulnerability to climate change (including extreme heat, droughts in semi-arid zones, and flood risks in coastal and urban areas). These infrastructure gaps contribute to economic exclusion and rural-to-urban migration.Sector context Pernambuco’s state road network connects agricultural production areas, industrial zones, and tourism destinations to key federal corridors (e.g., BR-101, BR-232, BR-104, BR-408, BR-423). While segments have seen upgrades, the network faces maintenance backlogs, safety risks, and climate-related degradation, including flood damage in low-lying areas and heat-related pavement distresses inland. The state is seeking to modernize road governance through long-term performance-based maintenance contracts (CREMAs and PPPs), supported by institutional reforms and targeted investments in road safety and resilience.The PE na Estrada project, a new phase within the Multi-Phase Approach (MPA) and part of the Learning Agenda, will promote sustainable, safe, and resilient transport infrastructure. The project aims to reduce structural inequality and enhance climate adaptation, while strengthening institutional capacity and leveraging private sector participation.Component 1: Safe and resilient proactive maintenance of state highways via long-term rehabilitation and maintenance contracts (CREMA) Subcomponent 1.1: Proactive maintenance CREMA-DBM. Long-term, performance-based safe and resilient road management contracts for priority state road corridors.Subcomponent 1.2: CREMA-PPP. Structuring and implementation of long-term (over 20 years) safe and resilient CREMAs using the PPP framework for selected state roads—largely financed by Private Capital Mobilization (PCM).Component 2: Institutional strengthening for sustainable road asset management, road safety, climate resilience, and decarbonization Component 3: Safe and Resilient Road works Subcomponent 3.1: Improvements along pilgrimage routes (Caminhos da Fe) to promote safety and create pedestrian areas in those religious areas. Subcomponent 3.2: Prepare projects in historical and touristic areas, along with a project for the cycleway along the coast. Those interventions will improve safety for pedestrians and cyclists, with special attention to areas near schools, and upgrade urban crossings at critical points. Subcomponent 3.3: Rural access infrastructure (local roads). Enhance the resilience of rural road networks by eliminating critical points on unpaved local roads, particularly in areas with high socioeconomic vulnerability across Agreste and Sertão. Public consultations will be held with local communities, including quilombola and indigenous communities, to identify and prioritize sections for intervention.Component 4: Project management - Support for staffing, equipment, and operating costs necessary for effective project implementation.

World Bank Group

Project

Manufacturing (Industrial), Warehouse, Government, Hotel, Raw Materials, Road, Consumer Products