The PARÁ II Project includes subprojects in five regions comprising 475 km road pavements, several bridges and weight stations as described below: (i) Rio Capim Region – 3 sections of approximately 150 km (ii) Xingu Region – 4 sections of approximately 145 km (iii) Baixo Amazonas Region – 5 sections of approximately 135 km (iv) Rio Caete Region – 1 section of approximately 25 km (v) Tocantins Region – 1 section of approximately 20 km.

The objective of the Project is to improve connectivity of the State of Pará and to promote regional development by rehabilitating existing unpaved roads.
The expected benefits include (i) average operational speed increased from 44.1 km/h to 68 km/h; (ii) annual average daily traffic increased from 387.5 to 1,000 vehicles per day; and (iii) travel time between Novo Repartimento and Santarém Port reduced from 13 hours to 9.5 hours.

The Project will be implemented by SETRAN, which is responsible for managing all roads in the State of Pará. As the Project will represent a substantial increase in the SETRAN’s workload, a Contract Manager will be hired to support the coordination and supervision of the Project implementation, including the E&S aspects.

The Project has been categorized as Category A in line with NDB’s Environment and Social Framework (ESF). Main environmental and social (E&S) impacts and risks include (i) biodiversity impacts to the Amazon terrestrial and aquatic ecosystems due to vegetation removal to enlarge and pave existing roads, construct bridges and operate roads; (ii) degradation and reduction of permanent protection areas including erosion, such as river banks; (iii) resettlement of about 440 households; (iv) indirect impacts on 3 indigenous communities located outside the road intervention areas but within buffer zones; (v) potential impacts on about 13 quilombola communities outside of the road intervention areas but within buffer zones; and (vi) potential reputational risk associated with road development in the Amazon region. These impacts will be addressed and mitigated by development of relevant environmental and social impact studies as well as implementation of an Environmental and Social Impact Management Plan (ESIMP) alongside the NDB’s intensive monitoring of the Project implementation.

The total cost of the Project is estimated at USD 191 million. NDB will finance USD 153 million or 80% of the total cost. The remaining balance will be financed by counterpart funds from the state’s budget.