
in the State of BahiaPublic Disclosure Authorized Eric LancelotJoanna MoodyGabriel Pereira CaldeiraCarlos Garzón GuineaCarlos Augusto Costa DavidPublic Disclosure Authorized © 2026 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Standard Disclaimer This work is a product of The World Bank. The findings, interpretations, and conclusions expressedin this work do not necessarily reflect the views of the Executive Directors of The World Bank or The World Bank does not guarantee the accuracy, completeness, or currency of the data includedin this work and does not assume responsibility for any errors, omissions, or discrepancies inthe information, or liability with respect to the use of or failure to use the information, methods,processes, or conclusions set forth. The boundaries, colors, denominations, links/footnotes and Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver ofthe privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encouragesdissemination of its knowledge, this work may be reproduced, in whole or in part, for Attribution Please cite the work as follows: “Eric Lancelot, Joanna Moody, Gabriel Pereira Caldeira, CarlosGarzón Guinea, Carlos Augusto Costa David and Anibal Coelho da Costa. 2026.Performance-based Contracts for Road Rehabilitation and Maintenance in the State of Bahia. Washington, D.C. Any queries on rights and licenses, including subsidiary rights, should be addressed to World BankPublications, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522- Cover photo: “Pedra do Pescoço - Itamarajú - Bahia - Brasil (2013).” Photo by Marinelson Almeidavia Flickr (CC BY-2.0) https://www.flickr.com/photos/marinelson/11531989124/ Report editing: Fayre Makeig Report design: Dragana Mrdja Table of Contents Acknowledgments.................................................................................................................................... 5Abstract.................................................................................................................................................... 61. Road Management in Brazil................................................................................................................ 82. Road Management in the State of Bahia: Comparing PBCs and Conventional Contracts..... 142.1. Context.................................................................................................................................................. 142.2. Method of Comparison: PBCs vs. Conventional Contracts for Road Maintenance............ 153. Key Findings........................................................................................................................................ 193.1. Cost and Pavement Solutions.......................................................................................................... 193.2. Road Conditions................................................................................................................................. 213.3. Competition at Award and Contract Addenda...........................................................................23 4. Conclusions.........................................................................................................................................25 4.1. Explore Longer-Term PBCs Where Regulations Allow................................................................264.2. Adopt PBCs Programmatically and at Scale for Managing Paved Road Assets................26 Acknowledgments This note was prepared by a team led by Eric Lancelot (Lead Transport Specialist) and consistingof Joanna Moody (Transport Specialist), Gabriel Pereira Caldeira (Extended Term TransportConsultant), Carlos Garzón Guinea (Investment Officer, IFC), Carlos Augusto Costa David This note is one of a series of analytic and advisory outputs of the Brazil Transport Cross-Sector Learning Agenda, FY26-FY28 (P512406) conducted under the guidance of Bianca BianchiAlves (Practice Manager, Transport, Latin America and the Caribbean) and the Brazil CountryManagement Unit. The team thanks colleagues Ben Eijbergen (Practice Manager, Transport,East Asia and the Pacific), Said Dahdah (Program Manager, Transport Trust Funds), StephaneStraub (Chief Economist, Infrastructure) and Gregoire F. Gauthier (Senior Transport Specialist) for Abstract Over the past few decades, various studies have compared performance-based contracts (PBCs)to traditional road management approaches. However, data limitations have often made it difficultto draw robust conclusions. For example, Ogita, Palsson, and Mills (2022) collected information Brazil’s experience with PBCs provides opportunities to complement global benchmarking with anin-depth, case study-