Suggestion to financing of projects of the Urban Mobility Plans for Brazilian cities
Adriano de C. Paranaiba a, José Augusto Abreu Sá Fortes b,
a
Instituto Federal de Goiás (IFG) [email protected]
de Brasília (UnB) [email protected]
b Universidade
Extended abstract
The aim of this paper is to present funding opportunities for investments with private capital participation for urban mobility Infrastructure,
through project finance. This model searches to bring economic fundamentals of engineering, making it possible for the participation of
private sector in the financing of projects of the Urban Mobility Plans of Brazilian cities.
According to Oliveira Filho (2013), the Brazilian experience refers to a strong dependence on public funding, that even demonstrating great
strides in financial structures in the past, nowadays is proven to be insufficient to fill the demand of infrastructure investments, among them
those related to urban mobility. “For the development of public-private partnerships is required the design of a more stable resource base,
either for the long-term funding bill itself, as for the guarantees of the project, or in venture capital funding.” (Oliveira Filho, 2013, p. 364)
However, more than a urban infrastructure financing model that meets the mobility, it is important to achieve synergy with models to review
the metropolis land use in favor of pedestrian, to create conditions of low carbon vehicles and options to improve urban mobility as a whole.
From this perspective, the problem that guides this research is how to build a model for infrastructure urban mobility investment with private
capital participation, in order to achieve the funding amounts needed for the urban mobility in Brazil.
An alternative for cities emerges form Brazilian Law n.12,431/2011 and National Decree n. 7,603/2011, which generated attractiveness to
private finance of infrastructure projects and can create a new opportunity for private sector participation in the financing of urban mobility
projects.
In the search of funding needed to provide investments in urban mobility, whether in the public transport construction or in its operation, it
is possible to list forms of financing as pointed by Olsen and Fearnley (2014) and Olsen et al (2011):
 Subsidies;
 Loans;
 Taxes intended;
 Gain on property values;
 Private operation (concessions), and;
 Public Private Partnerships (PPPs).
These alternatives are practiced while ordinary budget resources are insufficient. It is also possible that these alternatives are associated,
depending on the model set by the government authorities.
Oliveira Filho (2013) and Wajnberg (2014) pointed out that, with the enactment of the Law 12,431 (Brazil, 2011), appeared new incentives
for investment in private fixed income, leading to zero the incidence of income tax for debentures and investment funds.
Investment funds in receivables (FIDC) emerged in Brazil by the Resolution 2,907 / 2011 of the Central Bank of Brazil. "These funds are
based on the securitization of credits arising from loans, financing (including real estate), leasing operations, among others" (Silva, 2006
p.45). As Luxo (2010), these funds can be strategic in financial management meeting the following demands:
 Source of funds to issue the capital needs;
 Leverage new resources;
 New alternative to change the debt profile;
 Possibility of greater operational efficiency.
The Real Estate Receivables Certificates (CRIs) were created by the Law n.9,514 (Brazil, 1997), as a debenture, like a source of
dedicated funding for the housing market, following the same logic of financial leverage credit to future receivables.
These two mechanisms of financial leverage, FIDCs and CRIs, are also benefited by the law 12.431/11, and can be a new strand of funding
for urban mobility projects, facilitating the sponsors diversification, generating financial strength in the Urban Mobility projects and speeding
these funds.
This model, using Finance Project, as a private capital financing in infrastructure projects for urban mobility is justified by the need to review
the terms of the government participation in public investment, and the behavior of Public Private Partnerships in Brazil, specifically for
investment in urban mobility.
Roads, pipelines, power generation and electric energy transmission, among other infrastructure projects, were successful when using
Project Finance as infrastructure financing method, not only in Brazil, but also in many countries around the world. It is believed that this
method can be the best option to achieve success in urban mobility projects.
References
 Basso, L. J., Guevara, C. A., Gschwender, A.; Fuster, M. (2011). Congestion pricing, transit subsidies and dedicated bus lanes:
Efficient and practical solutions to congestion. Transport Policy, 18(5), 676-684.
 Lachmann, L. M. (1956). Capital and its Structure. Ludwig von Mises Institute.








Luxo, J. C. (2010). Estudo Comparativo dos Custos Operacionais e Tributários da Securitização e dos FIDCs. Revista de
Finanças Aplicadas. Publicado em 20ago10, pp. 1-12.
Medda, F., (2011). Land value finance: Resources for public transport. In: R. Sietchiping ed. Innovative land and property
taxation. Nairobi,Kenya: UN Habitat. pp. 42-54.
Medda, F. (2012). Land value capture finance for transport accessibility: a review. Journal of Transport Geography, 25, 154-161.
Merkert, R.; Hensher .D.A.(2013). Regulation, trust and contractual incentives around transport contracts: Is there anything bus
operators can learn from public air service contracts? Research in Transportation Economics. N.39. p.67-78.
Oliveira Filho, L.C. (2013) Financiamento de Longo Prazo e Mercado de Capitais em Investimentos de infraestrutura: novas
concessões e parcerias público-privadas. In: Oliveira, G.; Oliveira Filho, L.C.; (Orgs). Parcerias Público Privadas Desafios,
experiências e propostas. Editora LTC. Rio de Janeiro – RJ.
Olsen, S., & Fearnley, N. (2014). Policy transfer of public transport funding schemes–The case of Norway. Research in
Transportation Economics.
Silva, R. R. (2006) Os fundos de investimento em direitos creditórios (FIDCs) como uma alternativa ao financiamento de micro
e pequenas empresas: uma análise do mercado brasileiro de crédito (Dissertação de Mestrado) Faculdade de Economia,
Administração e Contabilidade de Ribeirão Preto/USP. São Paulo. 81p.
Wajnberg, D. (2014). Debêntures de infraestrutura: emissões realizadas e perspectivas. Revista do BNDES, Rio de Janeiro,
(41), 331-377.
Keywords: Project Finance; Funding; Urban Mobility; Brazil.