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Brazilian state of Santa Catarina to upgrade its road network with IDB’s support

$250 million loan to fund network’s extension, improvement, and maintenance, elimination of critical high-accident spots and the eradication of major environmental hazards

The Inter-American Development Bank (IDB) has approved a $250 million loan to finance the construction, paving and rehabilitation of the road network in the state of Santa Catarina, in southern Brazil.

The funds will contribute to the extension, improvement, and maintenance of the state road network and will be used to eliminate critical high-accident spots and key environmental hazards in the network. They will also finance personnel training and administrative system improvements at the State Infrastructure Department (DEINFRA).

“Santa Catarina is one of Brazil’s most thriving states,” IDB project team leader Paulo Carvalho said. “An enhanced road network will undoubtedly bring even more prosperity to its solid economy and its people.”

The program features the construction of 40 km of new roads, the paving of 120 km, and rehabilitation of 200 km, as well as the elimination of 22 high-accident spots, expected to generate a 10 percent reduction in the number of road accident fatalities.

Road construction, paving and rehabilitation are expected to reduce vehicle operating costs by 18 percent, 39 percent, and 17 percent, respectively, while travel time is estimated to decline by 51 percent, 63 percent, and 26 percent, respectively. In turn, faster transit is projected to contribute to dramatically slow down the rise of vehicle-related greenhouse gas emissions.

The IDB’s loan is for a 25-year term, with a 5-year grace period and a LIBOR-based interest rate. The program will receive an additional $118 million in local counterpart funds.