Institutional Arrangement
Investment Cycle
1
2
3
4
5
6
7
8
9
10
1
Planning
SCT and SEDATU prepare medium and long term sectorial programs for the development of massive urban transport systems, based on the objectives and strategies defined by the National Development Plan and the National Infrastructure Program. The principal objectives of the National Urban Development Program are to: a) control the expansion of urban areas and consolidate cities to improve people’s quality of life; b) consolidate an urban development model, generating wellbeing, and ensuring social, economic and environmental sustainability; and, c) foster a sustainable mobility policy to increase the quality, availability and accessibility of urban displacement.
2
Identification
SCT and SEDATU identify urban projects to be developed in accordance with planning documents.
3
Structuring
Local governments prepare, by themselves or by means of third parties, the necessary pre-investment studies and analysis, required for the development of new projects. FONADIN provides financing for this studies.
4
Registration
For projects that require federal funds, including those sponsored by local governments, SCT presents a registration application to the Investment Unit of the Ministry of Finance (whether funded with fiscal budget or by the National Infrastructure Fund or FONADIN).
5
Prioritization
The CIGFD will evaluate the projects that require the allocation of federal funds, and will decide its inclusion in the draft of the annual expenditure budget. Additionally, this commission will determine the prioritization of the projects based on: a) socioeconomic profitability; b) its impact in extreme poverty reduction; c) regional development, and d) concurrence with other programs and investment projects.
6
Authorization
- Projects that require federal funds are authorized by by the House of Representatives.
- Projects with funding from FONADIN are authorized by the Fund.
7
Promotion
The local governments are responsible for the promotion of the projects.
8
Bidding
The bidding process is responsibility of the sponsoring local governments, and the process must be registered in CompraNet.
9
Financing
Different sources of funds are available for the projects, depending on their particular characteristics and their financial structure, including federal funds or PEF, and funds form FONADIN, BANOBRAS, commercial banks, institutional and private developers, and from institutional investors.
10
Execution and Operation
Carried out by the awarded operators and/or developers, under the surveillance of the sponsoring local governments, and according to contract terms.
