Many cities in the state of Pará have been experiencing rapid urbanisation, without a commensurate development in infrastructure. Pará receives abundant rainfall throughout the year; however the vast majority of roads in the state are not paved and drainage systems are not adequate to deal with these conditions. This situation compromises access to transport infrastructure and impacts the overall quality of life in the state.

In 2018, NDB partnered with the State Government of Pará to support its Sustainable Municipalities Project, designed to improve the state’s urban infrastructure conditions. The project consists of three main components:

– drainage and road paving,

– sanitation; and

– telecommunications.

The total estimated cost of this project is USD 125 million. The project is co-financed through a USD 50 million loan from NDB, the Bank’s first sovereign guaranteed loan in Brazil and a USD 50 million loan from the Development Bank of Latin America. The State Government of Pará provides the remaining USD 25 million.

The proceeds from the NDB loan will be used to pave 186 km of existing urban dirt roads in 12 municipalities along the Trans-Amazonian highway and to install underground or surface drainage systems. In addition, the NDB loan will finance capacity building activities which will improve project implementation co-ordination and promote adequate maintenance of roads and drainage equipment.

The intended development results of the project include:

– increased urban connectivity,

– improved flooding control and enhanced resilience to climate,

– reduced cost of road maintenance.

It is expected that, upon its completion, the project will help improve the quality of life for residents in the 12 municipalities, where almost a third of the population will benefit from enhanced all-weather access to paved urban roads and sidewalks.