January 12th, 2018—With
technical advisory from IFC, a member of the World Bank Group, the Government
of the State of Bahia, in Brazil, through its Secretariat of Infrastructure
(SEINFRA), plans to promote the rehabilitation of BA-052, known as Estrada
do Feijão (or “Bean Road”). The project is currently in public consultation
stage; its final bidding notice should be published next March.
The project, which will be implemented through
a Public-Private Partnership (PPP), involves the rehabilitation and maintenance
of 462 kilometers of the Estrada do Feijão (BA-052), connecting the cities
of Feira de Santana and Xique-Xique, and 85 kilometers of the BA-160 road,
in the stretch between Xique-Xique and the ferry crossing point to the
municipality of Barra. The project also includes the building of a new
bridge over the São Francisco River that will connect the municipalities
of Barra and Xique-Xique. The new roads structure will reduce travel times
for pedestrians, passenger cars, and commercial vehicles, and make the
river crossing—currently done by ferry—and travel between municipalities
a lot safer.
The total investment is estimated at around
BRL 705 million over the 20-year concession period. Residents of 18 municipalities
in the western portion of Bahia State will benefit from the road improvements.
This project innovates on the contract model for Road Rehabilitation and
Maintenance (CREMA) currently in use in Brazil, as it will convert the
existing short-term agreements into a PPP. This will contribute to improving
the quality of the rehabilitation and maintenance services provided by
private partners, and for a longer period—benefiting both users and the
management of the infrastructure by the government.
The public consultation is the initial step
in the implementation of the bidding process. The bidding is expected to
start in March 2018. “We will hold a public hearing on January 18th
to complete the auction bidding notice,” says Marcus Cavalcanti, the Secretary
of Infrastructure for the state. “This project will contribute to the
region’s development, which is of utmost importance for the state’s economy.”
The project is being designed with the technical
support from IFC, in cooperation with the Inter-American Development Bank
(IDB) and the Brazilian National Bank for Economic Development (BNDES)
through their Private Participation Promotion Program, which aims to support
the implementation of infrastructure projects in Brazil.
IFC—a sister organization of the World Bank
and member of the World Bank Group—is the largest global development institution
focused on the private sector in emerging markets. We work with more than
2,000 businesses worldwide, using our capital, expertise, and influence
to create markets and opportunities in the toughest areas of the world.
In FY17, we delivered a record $19.3 billion in long-term financing for
developing countries, leveraging the power of the private sector to help
end poverty and boost shared prosperity. For more information, visit www.ifc.org.