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MIL OSI-C. Region: Latin/Latin America

Source: the Republic-of-Brazil-2

Latest newsMeasurement proposed by the Ministry of Regional Development allows for faster start-ups, job creation and boosting the economyBrasília-DF, 10/10/2019 – Major Federal Government Enterprises as a priority in the Partnership and Investment Program (PPI) of Civil House of the Presidency of the Republic, may have access to resources from the Amazon (FDA), Midwest (FDCO) and Northeast (FDNE) Development Funds. The objective of the measure proposed by the Ministry of Regional Development (MDR) is to take advantage of available investments efficiently, generating employment, income and economic dynamism in the regions. Signed by the President of the Republic, Jair Bolsonaro, and published on Thursday (10) in the Official Gazette, Decree no. 10.053 is the first step towards reducing bureaucracy in access to Development Funds. The document repeals Decree No. 7,839 of 2012, which deals with FDA regulations. Later will also be published the decrees amending the current regulations in the Northeast (FDNE) and Midwest (FDCO). With the revision in the rules, one of the main changes is the possibility of investments made by companies – up to five years before the presentation of the consultation letter – to be counted as counterpart for credit taking. The previously allowed deadline was only six months. The movement is supported by the new National Regional Development Policy (PNDR) and the Regional Development Plans (PRDs). The operationalization of the amounts available in the Development Funds will be exercised by the Deliberative Councils (Condel) of the Development Superintendences of these regions – Sudam, Sudeco and Sudene – more dynamically in relation to the regional reality. The changes will allow adherence to the guidelines. the new PNDR and the PPI. Work on the construction of the new rules began in mid-2016 through a joint effort by the then Ministry of National Integration (MI) and Finance, as well as regional superintendencies and resource-operating banks. “This is an innovation proposed by the MDR to reduce access to the resources provided by the Funds and to give even more breath to the projects that fall within the scope of the PPI, in line with the main objective of these resources, which is to finance large infrastructure projects. ”Says Minister of Regional Development Gustavo Canuto. According to him, it is thus possible to increase the effectiveness and effectiveness of the Funds in combating regional inequalities, as well as promoting better alignment of regional development policies. In the Amazon region, one of the enterprises that may benefit from the new rules is Linhão. Manaus-Boa Vista. The electricity transmission line will integrate Roraima with the National Interconnected System (SIN). Currently, the state is the only country in the country that is not part of the system that distributes energy throughout Brazil and, since 1997, has been supplied by energy from Venezuela. More than R $ 1 billion for investments For this year, the Regional Energy Funds Development projects are projected to grant R $ 1.2 billion. In 2020, the Union’s General Budget foresees contributions of R $ 1.3 billion. ProcedureThe Amazon, Northeast and Midwest Development Funds are among the main instruments for promoting regional development. The first two were created in 2001 and the last one in 2009, in order to secure resources for infrastructure investments, public services and productive enterprises with great germination capacity for new businesses and new productive activities in Sudam, Sudeco and Sudene. They may request funds from these Funds for legal entities that carry out activities in economic sectors considered relevant to the North, Northeast and Midwest and to reduce social inequalities. Some of the supported areas are infrastructure, agro-industry, innovation and technology, industry, tourism and services. Financing must be paid by the contractor within 12 years of the start-up of the project. For infrastructure projects, the period may be extended to 20 years. The grace period is 12 months, also from the beginning of the activities.

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