IDB Supports Digital Transformation in Brazil's Alagoas State

The Inter-American Development Bank (IDB) has approved a $15 million loan to boost the digital transformation of the government of the Brazilian state of Alagoas. The goal of the project is to help improve the state's relationship with its citizens, increase people's satisfaction with public services, and lower the cost of using those services.

This project will strengthen the governance and digital capabilities of the government, including the development of cybersecurity and data strategies. It will also bolster the digital skills of public servants involved in the process of digital transformation and implementation of a platform with information strategies for decision-making. Other project components include support for public policy management and modernization of the state government's technology infrastructure.

Furthermore, the project will develop initiatives to improve and automate administrative processes, including the use of new technologies such as artificial intelligence. The state government's digital public services and citizens relations platform will be strengthened, expanding digital services and adding new functions.

The partnership with Alagoas will include a diagnostic of in-person public services that are most often used by women so that they receive priority treatment in the process of digitalization. In this way the project aligns with the IDB's Vision 2025 program, which sets the promotion of gender equality and diversity as one of the pillars of economic recovery and inclusive growth in Latin America and the Caribbean.

Education and Digital Health

Project funds will also be used to support digital transformation in the management and provision of services in education. One of the expected outcomes is increased connectivity in schools by improving digital infrastructure (equipment and connections, computers and tablets), boosting services that use digital platforms and virtual classes, and improving the digital training of teachers and administrative personnel in the education sector.

This project component supports diversity through the inclusion of schools in indigenous and African-origin communities that are in the process of digital transformation. These schools will be prioritized, providing them with computer labs with Internet access for students.

In the area of health, the investments will be used to implement technological solutions that facilitate a pro-active relationship with the population by promoting preventive health. A health module will be designed especially for women, focusing on preventing non-transmissible diseases.

The IDB loan has a payback period of 24.5 years, a grace period of six years, an interest rate pegged to the SOFR and a counterpart contribution of $10 million from the Alagoas state government. The executing agency will be the Alagoas State Planning Secretariat, which coordinated the design of the products that will be created with the loan.

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance, and training to public and private sector clients throughout the region.

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