The Minister of Planning and Budget of Brazil (MPO), Simone Tebet, and the Executive President of FONPLATA, Luciana Botafogo, signed on July 2 an amendment to the Technical Cooperation Agreement in force between the institutions.

Since 2024, FONPLATA has provided technical assistance to the MPO, specifically to FOCEM's National Technical Unit (UTNF), for the structuring of regional integration projects financed by FOCEM. Within this framework and acknowledging the need to strengthen the technical capacities of the executing agencies in the initial stages of project execution, it was considered appropriate to broaden the scope of this cooperation to include technical support from FONPLATA in the implementation stage of the projects approved by the fund.

The addendum extends the term of the agreement by 12 months and increases the resources committed, which may be used to provide direct support to mayors' offices, state governments, and other agencies involved in project preparation.

Minister Tebet referred to the expansion of the partnership as “another demonstration that we are committed to results. After all, it is not enough to approve projects; they must be executed with efficiency, transparency, and real impact.”

The Secretary for International Affairs and Development and current Brazilian Governor to the bank, Viviane Vecchi, highlighted that the results of this partnership with FONPLATA were positive in the preparation of the eight Brazilian projects selected by the External Financing Commission (Cofiex) to receive FOCEM resources. For the Brazilian Governor, “the performance of the FONPLATA team was crucial: they provided extremely high-quality technical support, assisted by the technical staff responsible for the various dimensions involved in preparing a project, and pointing out solutions for each of the eight projects.”

Vecchi also noted that FOCEM does not fund basic projects, only the executive project, after approval of the basic project. Thus, without FONPLATA's cooperation, some projects might not even have been submitted to the Fund. And concluded: “This cooperation is essential to expand the capacity of subnational governments to formulate and implement quality projects that promote sustainable development in areas often marked by historical inequalities.”

Executive President Luciana Botafogo highlighted that: “This extension is a new milestone in our relationship with MERCOSUR. We are honored to be able to contribute to the strengthening of FOCEM, a key instrument for reducing asymmetries in our region. We are interested in contributing with specialized technical assistance so that subnational governments can make stronger progress in historically neglected areas, such as border towns, and that the projects reach a successful conclusion, with a concrete impact on the territories.”

Progress and outcomes

During the LXVI Ordinary Meeting of the MERCOSUR Common Market Council (CMC), on July 2, two projects structured under this technical cooperation were approved to receive financing through non-reimbursable resources of FOCEM. The approved projects address infrastructure issues in the cities of Ponta Porã, for the development of the border area, and Corumbá, for the reduction of water levels, both in the state of Mato Grosso do Sul.

03/07/2025