World Bank Approves $120 million Project to Boost Tocantins Jobs in Brazil

The World Bank's Board of Directors has approved a US$120 million project to transform road connectivity, strengthen family farming, and promote inclusive, sustainable tourism in Brazil's northern State of Tocantins — a package designed to expand economic opportunities and generate thousands of jobs across rural and vulnerable communities.

The initiative is backed by US$30 million in counterpart financing from the State of Tocantins and an estimated US$7.7 million in private capital mobilization, bringing total financing to nearly US$158 million. The eight-year program combines transport, agriculture and tourism investments with a focus on climate resilience and social inclusion.

Integrated Approach to Jobs and Climate Resilience

By linking safer roads with climate-smart agriculture and community-based tourism, the project aims to boost productivity while protecting the state's environmental assets.

"Tocantins has strong potential to create quality jobs while protecting its natural and productive assets," said Cécile Fruman, World Bank Country Director for Brazil. "By linking safer and more resilient roads with climate-smart agriculture and inclusive tourism, this project supports a development model that expands opportunities for women, youth, family farmers, and traditional communities, while strengthening the state's long-term competitiveness."

Governor Wanderlei Barbosa described the approval as a milestone in a two-decade partnership with the World Bank.

"This project consolidates a partnership of more than 20 years with the World Bank and marks a new chapter in the state's development," he said. "Beyond investments in road infrastructure, including highway improvements and the paved connection to Lizarda, the project expands its reach by strengthening family farming and inclusive tourism."

746 Kilometres of Roads to Be Rehabilitated

A major component of the project focuses on transport infrastructure. The program will:

• Rehabilitate and maintain 746 kilometres of paved state roads under performance-based contracts

• Implement targeted road safety improvements

• Support preparation of Tocantins' first road public-private partnerships (PPPs)

Improved road connectivity is expected to reduce travel times, enhance access to markets and essential services, and lower logistics costs for producers in remote areas.

Strengthening 12,000 Family Farmers

The agriculture component will expand rural extension services and support climate-smart farming practices for 12,000 family farmers, with priority given to women-led, youth, Indigenous, and Quilombola producers.

Measures include:

• Technical assistance for climate-resilient production

• Matching grants and productive alliances

• Support for integration into value chains

The aim is to increase productivity, diversify incomes and build resilience to climate shocks, particularly in smallholder communities.

Boosting Inclusive Tourism in Jalapão

In the Jalapão region — known for its unique landscapes and ecotourism potential — the project will finance improved planning and small-scale infrastructure. It will also support micro and small tourism businesses, including Quilombola communities, through training, mentoring and competitive grants.

Officials say strengthening sustainable tourism can generate new income streams while preserving natural ecosystems.

Governance and Implementation

The project will be coordinated by the State Secretariat for Planning and Budget (SEPLAN), which will oversee implementation, monitoring and evaluation, and fiduciary and environmental and social risk management.

By integrating transport, agriculture and tourism under a single framework, the World Bank said the initiative is designed to create a virtuous cycle of job creation, productivity gains and climate resilience.

Over eight years, the program is expected to generate thousands of direct and indirect jobs while improving rural access to markets, education, health services and economic opportunities throughout Tocantins.