IDB Approves Financing to Support Digital Transformation and Use of Artificial Intelligence in Piauí, Brazil

WASHINGTON - The Inter-American Development Bank (IDB) approved a $50 million loan to support digital transformation in the state of Piauí through the "Piauí Mais Digital" project. The operation aims to expand digital connectivity, increase the supply and use of digital public services, improve public management through digitization, and enhance the digital capabilities of businesses.

The project will finance the expansion of the state's data transmission network and modernization of its data center infrastructure, as well as initiatives to strengthen risk management and cybersecurity incident response. Public employees' digital skills will also be strengthened through a certification program in artificial intelligence to ensure optimal use of digitized and automated public services.

The project also focuses on inclusion, ensuring that corporate systems and digital platforms are accessible to people with disabilities and that digital solutions are implemented to serve vulnerable populations. Additionally, internet access points will be provided in 13 quilombola communities, and a digital literacy program will be developed for populations in these territories.

One component will be dedicated to the digital economy, helping to increase the digital capabilities of local businesses through technical assistance to promote digital technologies in priority sectors and a talent development program for women and more vulnerable populations. The program will also support the strengthening of the institutional capacity of the Secretariat of Artificial Intelligence, Digital Economy, Science, Technology, and Innovation-the first secretariat in Brazil with a mandate for artificial intelligence topics.

The expansion of connectivity is expected to directly benefit about 755,000 residents of the 99 municipalities served, and more than 200 companies should be reached by programs related to the digital economy, according to estimates. The project aims to increase the number of public services available online and raise public satisfaction with these services. The digitization process will generate more than R$ 130 million in savings for society and the state's public coffers.

This is the 11th operation approved by the IDB Executive Board as part of the Conditional Credit Line for Investment Projects (CCLIP) Brasil Mais Digital, from 2021.

The IDB loan for Piauí has a repayment term of 24.5 years, a grace period of 6 years, and an interest rate based on SOFR. The local government's co-financing is $12.5 million.