Bahia Launches $200M Sustainable Infrastructure Program with World Bank Backing

The Sustainable Infrastructure Program is deeply aligned with the Bahia Government’s Multi-Year Plan (PPA) 2024–2027 and the Bahia Integrated Development Plan (PDI) 2035.

In a landmark move to modernize its infrastructure while embracing sustainable development, the state of Bahia, Brazil, has secured a US$200 million Development Policy Loan (DPL) from the World Bank for the Bahia State Sustainable Infrastructure Program. The initiative is designed to make the state’s transport, energy, and digital infrastructure more resilient, inclusive, and environmentally sustainable—setting Bahia on course to become a pioneering model for green development in Brazil and Latin America.

Transforming Transport: Climate Resilient Roads and Greener Mobility

One of the key pillars of the program focuses on overhauling Bahia’s transport sector. By June 2027, all new road rehabilitation, construction, and proactive maintenance projects on state highways will be required to incorporate considerations of climate risks, especially from extreme rainfall and droughts. This shift will enhance the long-term resilience of road networks, reduce weather-related disruptions, and cut transport costs for businesses and residents across the state.

The initiative also promotes non-motorized mobility, particularly for women. With a special emphasis on Afro-Brazilian women, at least 1,000 women will be trained in the safe and practical use of bicycles. Cycling infrastructure and training are intended to foster safer, affordable, and efficient travel options—offering greater access to jobs, education, and services while reducing dependency on motorized transport.

Green Energy Goals: From EVs to Clean Hydrogen Leadership

In parallel, the program introduces robust reforms in the energy sector. Fiscal incentives are expected to increase electric vehicle (EV) sales to 6% of all new passenger vehicle sales by December 2026, up from 4.3% in 2023. A tax exemption policy for EVs will also stimulate local manufacturing, particularly with the planned launch of EV production in the Salvador Metropolitan Region, potentially generating new jobs and industrial activity.

Bahia is also positioning itself as a leader in low-carbon hydrogen production. By 2027, the program targets the issuance of environmental licenses to at least four hydrogen developers. This aims to spark private investment in green hydrogen and biofuels, aligning with Brazil’s broader ambitions to expand its clean energy portfolio and decarbonize the economy.

Moreover, rural electrification is central to the program’s equity goals. An investment plan is in development to enhance electricity services for 30,000 rural customers, with a particular focus on supporting female-led farms in semi-arid areas. These farmers will also receive technical support to participate in the clean fuel value chain, fostering inclusive growth and diversifying rural income sources.

Distributed Solar Power for Public Buildings

Energy sustainability will also be enhanced through the deployment of distributed solar photovoltaic systems. By June 2027, the program aims to install 43 megawatts (MW) of solar PV systems across 161 public buildings. These installations are expected to significantly cut greenhouse gas emissions and lower public energy expenses, while showcasing renewable energy’s role in public sector efficiency.

Strategic Alignment with Bahia’s Long-Term Plans

The Sustainable Infrastructure Program is deeply aligned with the Bahia Government’s Multi-Year Plan (PPA) 2024–2027 and the Bahia Integrated Development Plan (PDI) 2035. Both frameworks prioritize economic competitiveness, quality of life, environmental stewardship, and institutional modernization. This synergy ensures that the World Bank-supported reforms contribute directly to Bahia’s broader vision of sustainable, inclusive prosperity.

According to Johannes Zutt, World Bank Country Director for Brazil, “The Bahia State Sustainable Infrastructure Program represents a significant milestone in the state's journey towards sustainable development. By leveraging innovative technologies, Bahia is poised to become a model for other regions in Brazil and beyond.”

Broader Impact: Jobs, Growth, and Climate Leadership

The impact of this program is expected to extend far beyond infrastructure improvements. From job creation in the automotive and renewable energy sectors to climate change adaptation and improved public health from reduced emissions, the initiative sets the stage for a more resilient and equitable Bahia. It also contributes meaningfully to Brazil’s national commitment to achieve net-zero emissions by 2050.

The Bahia State Sustainable Infrastructure Program stands not only as a transformative local initiative but also as an example of how integrated, climate-conscious development strategies can drive national progress and global sustainability.