The Inter-American Development Bank (IDB) approved a $15 million loan to revamp Brazil’s Federal Assets Division (SPU), which administers properties owned by the federal government. The five-year program aims to improve the overall management and expansion of SPU’s property database, potentially identifying 100,000 new properties.
“The project will propose new business models to put government properties to a better use, creating social as well as economic benefits,” said Pedro Farias, IDB project team leader . “We expect legalization of previously illegal or irregular settlements to benefit a total of 50,000 families, most of them living in poverty or in precarious conditions.”
In addition, system upgrades and training will ramp up revenue and help SPU increase its productivity by 20%. Annual revenue is expected to grow by $156 million, totaling $411 million by the last year of the operation.
A new geo-referenced information system developed as part of the program aims to integrate all SPU processes, supporting decision-making and management of government properties.
New communication technologies will facilitate information-sharing between SPU headquarters and the 27 property management offices across the country. Files and documents will be stored digitally, making access and management more secure and providing a convenient way of consulting and expanding information in the future.
The total cost of the program will be $30 million, including $15 million in counterpart funds provided by the Government of Brazil. The IDB loan has an amortization period of 20 years, with a five-year grace period, at a LIBOR-based interest rate.
- Romina Tan Nicaretta