World Bank Backs Brazil Flood Protection With $119 Million

World Bank Acting Country Director for Brazil Jorge Coarasa said protecting the region from growing flood risks is essential to preserving jobs and supporting long-term economic prosperity.

The World Bank Group has approved a new US$119.2 million project to help the Brazilian state of Santa Catarina reduce flood risks and improve its ability to respond to weather-related disasters. The initiative is expected to benefit around 420,000 people across 54 municipalities, with many of the beneficiaries living in low-income communities that face the greatest risk during severe flooding. The project is designed to protect lives, reduce economic disruption, and strengthen the state's long-term resilience as extreme weather events become more frequent and severe.

Flood protection to safeguard communities and businesses

Santa Catarina is one of Brazil's leading economic regions, with strong manufacturing, technology, and agribusiness industries. The Itajaí Valley, which accounts for about one-third of the state's jobs, is a major economic hub and home to the Port of Itajaí, Brazil's second-largest container port. The port plays a vital role in international trade, particularly for beef exports.

Despite its economic importance, the valley is highly vulnerable to floods and landslides. Between 1991 and 2023, natural disasters caused more than US$7.2 billion in economic losses across Santa Catarina and affected over 20 million people. During the devastating floods of 2008, around 90 percent of the city of Itajaí was submerged, forcing shipping operations to move to neighbouring states and resulting in an estimated US$35 million in lost port revenue every day.

World Bank Acting Country Director for Brazil Jorge Coarasa said protecting the region from growing flood risks is essential to preserving jobs and supporting long-term economic prosperity.

Project combines infrastructure with early warning systems

A major part of the investment will focus on improving flood control infrastructure in the Itajaí Valley. Planned works include dredging river channels, strengthening embankments, installing floodgates along the Itajaí-Mirim River, and supporting the construction of several upstream flood-control dams as part of the state's wider resilience programme.

The project will also expand early warning systems throughout Santa Catarina, improving coordination between climate monitoring services and local civil defence agencies so communities receive faster and better-organised emergency responses. Nature-based flood management solutions will also be developed alongside traditional engineering measures.

The investment forms part of Santa Catarina's US$1 billion Proteção Levada a Sério ("Protection Taken Seriously") programme, with the World Bank saying the approach could later be expanded to other river basins across Brazil and serve as a model for flood-prone regions throughout Latin America.