The Brazilian Ministry of Planning and Budget submitted to the MERCOSUR Structural Convergence Fund (FOCEM) a road project to boost transportation between Brazil and Paraguay, the first to be presented after Brazil regularized its situation with the MERCOSUR fund. The project, which proposes the construction of a road bypass for Amambai in Mato Grosso do Sul, was prepared with the support of FONPLATA.

The works will facilitate cargo transportation on the border strip between Brazil and Paraguay and improve the quality of life of the local population. The total value of the project, which was sent through Itamaraty, Brazil's Ministry of Foreign Affairs, is of USD 6.67 million, of which USD 5.1 million will be granted by FOCEM as non-reimbursable resources (donation). After evaluation and approval within the MERCOSUR bodies, the project execution will start in the first half of 2025.

The preparation of the project had the technical support of FONPLATA, which is made up of the MERCOSUR countries. In May of this year, the Brazilian Ministry of Planning and Budget and the Development Bank signed a memorandum of understanding for joint support in the preparation of Brazilian projects to be submitted to the Fund.

About FOCEM

The MERCOSUR Structural Convergence Fund – FOCEM is a solidarity mechanism, financed by MERCOSUR countries, which aims to reduce asymmetries in the bloc. The resources that make up the fund are of public nature, contributed by MERCOSUR member countries, and are distributed as non-reimbursable donations.

Projects must be submitted by public entities, such as municipal or state governments, state-owned companies, universities, and other public educational institutions, and may be financed for up to 85% of the total amount, with a local financial counterpart of 15%.

09/23/2024