The president Michel Temer announced a measure to stimulate works of infrastructure in the Brazilian cities on July 12. The package includes the creation of a fund to finance projects and studies for the development of concessions and Public-Private Partnerships (PPP) of the Union, States and cities.
Besides the creation of a fund with resources from Growth Acceleration Program (PAC) for the development of the projects, the economic team has put the banks to release R$11.7 billion for financing the works in the cities.
The Minister of Planning Dyogo Oliveira has detailed that the government will relocate a total of R$40 million, still in 2017, from PAC to this fund to support the design of infrastructure projects of the city halls. The promise is that the National Treasure transfer R$180 million to this fund until 2019.
“This will be relocate inside the resources already in the budget, there is no new expense. It may look like a small amount, but the resources will boost a total of R$4 billion in investments in concessions through the cities” has claimed the Minister. These projects will be funded by the public banks, R$2 billion being from Caixa Econômica Federal and the other R$2 billion from Banco do Brasil.
The Ministry of Cities has announced the release of R$5.7 billion in funds for works in sanitation and mobility in the cities. The urban mobility projects will count with up to R$3.7 billion in funding with resources from the Guarantee Fund for Time of Service (FGTS), through the Pro-Transportation Program. The selection process will be continuous, without a limit date for subscribing the proposals.
Banco do Brasil has announced other R$ 2 billion in credit for the acquisition of equipment and the design of infrastructure projects for the cities. The maximum amount per operation id R$5 billion for cities with population smaller than 200 000 inhabitants. Bigger cities will not have this limit.
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