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Brazilian state of Bahía to improve public administration with help from IDB

Loan of $50 million will help improve the quality of services for citizens 

The Inter-American Development Bank has approved a $50 million loan for the northeastern Brazilian state of Bahía for a program designed to strengthen public administration to better serve its citizens. The project is known as PROGEST. 

Even though the state is posting economic growth, it lacks information and strategic planning studies. It is also weak on territorial planning and aligning budget planning with its Multi-Year Plan (PPA in Portuguese), among other challenges that affect the way Bahia provides services. 

In this regard, macro-economic activities – from strategic planning and budget alignment to the strengthening of internal management of state organizations and actions related to the procedures of state public service entities – were designed to improve the average wait time for attending to citizens and the efficiency with which services are rendered. 

In this way the program seeks to improve processes and methodologies so that strategic information can be utilized more efficiently. Changes include training and updating equipment and systems to enhance the budget planning alignment within the Multi-Year Plan, as well as drawing up a Territorial Development Plan. 

The state is expected to improve its levels of efficiency and effectiveness in management and citizen services, and increase the percentage of PPA programs undertaken on the basis of strategic studies, from 6.37 percent to 60 percent. It is also expected to boost from 8 percent to 40 percent the percentage of government secretariats with budget actions in alignment with the PPA. 

This is the first part of the loan to improve public administration that is being carried out directly between the IDB and the Brazilian state. The loan has an interest rate pegged to the LIBOR. It was granted over a period of 25 years with a grace period of 5.5 years.

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