Paraná Water Project to Shield Farms, Communities and Thousands of Jobs

Around 9,200 farmers are expected to benefit from measures designed to make agricultural production more resistant to drought and extreme weather, covering more than 130,000 hectares.

Brazil's State of Paraná is preparing a major push to make farms, cities and rural communities more resilient to droughts, floods and growing pressure on water supplies, backed by a US$186 million loan from the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group. The Paraná Water Security Project is expected to generate and protect between 54,000 and 78,000 jobs linked to agriculture, water services, and wider economic activity, while improving how water and land resources are managed across one of Brazil's most productive regions.

Agribusiness produces nearly one-third of Paraná's economic output and accounts for the vast majority of its exports, making reliable rainfall, healthy soils and secure water supplies essential to household incomes and the wider state economy. More frequent droughts can reduce harvests and strain rural water sources, while floods can damage farms, infrastructure and communities, creating risks that stretch far beyond individual agricultural properties.

Thousands of Farmers Get Protection Against Climate Shocks

Around 9,200 farmers are expected to benefit from measures designed to make agricultural production more resistant to drought and extreme weather, covering more than 130,000 hectares. The project will encourage practices such as no-till cultivation, cover cropping and biodigester technology, helping farmers conserve soil and water, cut emissions and keep their businesses productive during difficult growing seasons.

The project also brings the World Bank Group's AgriConnect initiative into practical use in Paraná. Around 500 rural extension professionals will receive training, Integrated Farm Plans will be prepared for as many as 15,000 properties, and matching grants will support approximately 8,645 family farms in adopting climate-resilient, low-carbon agricultural practices across 130,290 hectares.

Improved rural water and sanitation services are expected to benefit tens of thousands of people in communities where reliable services remain limited, while stronger water safety measures will support more resilient supplies for around 2.2 million urban residents. Across the broader Water Forward activities, the project is expected to improve water and sanitation services for 77,600 people.

Rivers, Forests and Farmland Become Part of One Water Strategy

A major part of the investment focuses on restoring natural landscapes that help regulate water. Riparian forests and degraded land covering 10,690 hectares of Permanent Preservation Areas along rivers and springs will be restored, helping protect waterways, reduce erosion and strengthen watersheds against climate extremes.

Sustainable land management will extend across roughly 130,500 hectares, connecting farm productivity with the health of the ecosystems that supply water to rural and urban communities. This approach treats forests, agricultural soils, rivers and water infrastructure as parts of the same system rather than separate environmental and economic concerns. Over 20 years, the project is projected to deliver net greenhouse gas sequestration of 3.98 million tonnes of CO2 equivalent, supporting Brazil's nationally determined contribution and Paraná's Climate Action Plan 2024–2050.

Water Security Becomes an Investment in Paraná's Economy

The project also reflects the three pillars of the World Bank Group's Water Forward approach. Water for People includes stronger state water-resource management, the preparation of 42 watershed plans and improved water and sanitation services. Water for Food focuses on protecting agricultural livelihoods and strengthening resilience to drought, including restoration of riparian forests. Water for Planet links sustainable agricultural land management with ecosystem recovery and lower net greenhouse gas emissions.

For Paraná, these investments carry an economic purpose that reaches well beyond water infrastructure. More reliable water can help farmers protect harvests, businesses maintain activity, and communities withstand periods of extreme weather without facing the same level of disruption.

"Water is the backbone of the economy, and securing it against a more unpredictable climate is essential for protecting jobs and sustaining growth in Paraná," said Cécile Fruman, World Bank Country Director for Brazil, describing the project as a foundation for keeping farmers, businesses and communities productive and resilient in the years ahead.