» Purpose

This program is aimed at the modernization of the tax administration and the improvement of the quality of public expenditures in the perspective of sustainable local development, seeking to offer to Brazilian municipal districts the possibility to act in the securing of more stable and not inflationary resources and in the improvement of the quality and decrease in the cost practiced in the offering of services in the areas of general administration, assistance to children and youngsters, health, education and the generation of work and income, through the following activities: 

strengthening of managerial, normative, operational, and technological capabilities of the tax administration and public management of the basic social services and other actions of a fiscal nature or rationing in the use of public resources available at local governments; 

development and improvement of information, services and process systems aimed at fulfilling municipal attributes and competencies established in the ambit of the Single Health System - SUS, Child and Youth Statute - ECA and the Law of Educational Directives and Bases - LDB; 

accompanying of tax obligations, maximized use of inactive/underused resources and the elimination of losses, improvement in the quality and offering of these services at a lower cost, registration, control and management of the execution of the public expenditure; 

permanent cooperation of federation units among each other, with Federal Administration organs and Civil Society for collective action, interchange of experiences, information, registries and the forming of social networks that rationalize, improve and expand service and reduce the per unit cost for offering services; 

modernization of the public administration aimed at local development initiatives that promote the qualification and articulation of the productive environment and generation of labor and income.


» Clients

Municipal districts that present potential for own income that is economically advantageous or with a significant increase in productivity expenditures, especially in the basic sectors.


» Financeable items

information technology and computer equipment: acquisition of hardware and computer and communication networks and the development of software and information systems, including for implementation and access to the internet; 

qualification of human resources: development of personnel training, update and recycling programs, participation in courses, seminars and technical visits; 

specialized technical services: execution of services to develop project activities, including organizational and managerial systems, registration bases and information technology; 

equipment for the support of operations and inspections: acquisition of equipment for operations, communications and other mobile operational assets; 

physical infrastructure: adaptation of physical environments, through the improvement of installations and operational citizen service programs. 


» Types of Financial Support

Directly with BNDES or with the Agent Bank and indirectly (non-automatic). (For operations directly with BNDES, the minimum amount for this operation is R$ 6 million)


» Non-financeable items

construction and reequipping of schools, health and service units; 

infrastructure works that are not aimed at the improvement of the administration's efficiency; 

programs for the termination of servers; 

acquisition or collection of real-estate or plant assets; 

acquisition of used machines and equipment.

expenses with maintenance of activities and costing of Municipal Administration, including with active and non-active personnel (also to be considered for the purpose of Municipal counterpart to the project); 

expenses with expropriation or acquisition of land;

expenses with paving and public lighting, when separately from the other investments in urban infrastructure, sanitation or transportation. 


» Interest Rate

For support directly from BNDES: Financial Cost + BNDES Fee + Credit risk rate

For support directly for the agent: Financial Cost + BNDES Spread + Credit risk rate + Flat rate 

For indirect support: Financial Cost + BNDES Fee + Financial Intermediation Rate + Accredited Financial Institution fee

Financial Cost
TJLP - Long Term Interest Rate

BNDES Spread
1.0% per year

Credit Risk Rate
1% per year

Flat rate
Up to 3% on amounts released

Accredited financial institution's spread
to be negotiated between the accredited financial institution and the client.


» Total Period

Total period of up to 8 years, including the maximum grace period of up to 24 months.


» Share Level

Up to 90% of the value for items that may be supported for municipal districts with populations of more than 50 thousand inhabitants. 

Up to 100% of the value for items that may be supported for municipal districts with populations that have less that 50 thousand inhabitants.


» Collaterals

Shares in Participation Funds (of Municipalities of States-FPM or FPE) and/or ICMS or ICMS-Exportation, observing the norms pertinent to the Central Bank, Federal Senate and the National Treasury Department. 


» Support Criteria

In the resources allocation for the project, the municipality shall note the following investment limits by supportable item that, however, are not applicable to the direct BNDES operations, performed without the participation of its agents: 

	Financeable Item		% limit
	Information Technology and Computer Equipment		35
	Qualification of Human Resources		25
	Specialized Technical Services		35
	Equipment for Support to Operations and Inspections		25
	Physical Infrastructure		20

Obs.: sum greater than 100% to offer greater flexibility in the distribution of values between items.

The development of the project will take place through the identification and selection of its Action Focus, having as references:
 
General: Organization and management, information systems and technology, intra and inter-institutional relations, legislation, service to the citizens, registries. 

Specific to Tax Management: Collection, administrative and legal charges, inspections, and economic tax studies. 

Specific to the Financial and Estate Administration: Budget, financial execution, accounting and public debt, audits and internal control, estate management. 

Specific to Health Administration: Operations of Health Units, Operations of Health Programs, Sanitary and Epidemiological Control, Municipal Health Council, Municipal Health Fund. 

Specific to Educational Administration: Operation of School Units, Operation of Educational Programs, School Councils, Fund for the Maintenance and Development of Elementary Education and Valuing Professorship - FUNDEF, FUNDEF Council. 

Specific to the Administration of Assistance for Children and Youths: Operations of the Service Units and Networks, Operation of Assistance Programs, Municipal Council for the Rights of Children and Youths, Tutor Councils, Fund for the Rights of Children and Youths. 

Specific to General Administration: Management of human resources, payroll, bids and purchases, contract management, protocol and control of processes.

The value of the financing must simultaneously observe the following limits: 

R$ 30 million;

R$ 18.00 per inhabitant;

7% of the Municipal District's Real Net Income, according to the concept defined in Art. 6, Paragraph 3, of Resolution no. 78/98 of the Federal Senate. 

Investments made until the sixth month prior to the date in which the request was presented may be considered as the municipal district's balancing item in the project. 

Expenses with the maintenance of activities and costs of the Municipal Administration, including with active and inactive personnel, will not be subject of financing or considered for as the municipal district's balancing item in the project.


» Addressing

the requests for financing that are less than R$ 6 million must be forwarded through Banco do Brasil, that has the BNDES's mandate for the PMAT, though intermediation of any one of its agencies; more information by be found in the BB (www.bancodobrasil.com.br) and Caixa Econômica (ww.caixa.gov.br/);
the financing may also be obtained through the financial agents of the BNDES that are interested in operating the PMAT and have a margin to contract with the Public Sector;

the requests for financing that are above R$ 6 million, should be submitted though a Prior Consultation, according to the Frameworking Information Script/Prior Consultation - PMAT and forwarded to: 
Banco Nacional de Desenvolvimento Econômico e Social - BNDES
Área de Planejamento-AP
Departamento de Prioridades-DEPRI
Av. República do Chile, 100 - Protocolo - Térreo
20031-917 - Rio de Janeiro, RJ
to keep track of the project, the municipal district must preferably make use of the Internet to forward periodic reports on the physical-financial progress to the BNDES, in the case of direct operations, and the accredited financial institution, in case of indirect operations, with qualitative analyses of deviations and aspects that are relevant/critical to its performance; 

the BNDES will perform periodic technical visits to keep track and evaluate executed projects, both in the direct and indirect form, for the set of supported municipal districts, aiming towards reaching the goals and objectives of the project, as well as to cultivate an exchange of experiences and the diffusion of successful initiatives; 

the soliciting municipal district must present to the BNDES, based on the Guiding Norms that direct the Program and after the frameworking of its Prior Consultation, a Project for the Modernization of the Tax Administration and Management of the Basic Social Sectors, that allows for the identification, analysis and accompanying of the set of activities and goals, through which it intends to reach a greater level of fiscal efficiency in its collections and an improvement in the quality of municipal expenditures; 

The municipality must formally create a Special Task Force for Modernization of Public Management, to coordinate the elaboration and implementation of the whole project, directly connected to the municipal secretary responsible for the area under intervention and formed by professionals of different technical areas.