The city’s new administration, which took office in July 2015, had planned a public works shock involving approximately USD 250 million via creation of a trust -- a novelty in structuring for the Municipality of Montevideo.
On February 1, 2016, with the support of part of the political opposition, Montevideo’s Municipal Council approved creation of Fondo Capital, a 20-year financial trust that at this first stage amounts to approximately USD 95 million to finance urban transit works and improve the city’s waste management system. Repayment will be ensured by funds coming from the motor vehicle registration system (SUCIVE) by means of assignment, securitization or earmarking of a part of vehicle registration revenue.
Works to be performed at this first stage are:
• Waste sorting and compacting plant for the city’s central-west zone, to cut transfer time for garbage collection trucks and improve efficiency of cleaning circuits.
• Avenida José Belloni: widening, construction of double lane, sidewalks, bicycle paths and lighting. Additionally, sewage installation works will be undertaken in the Piedras Blancas neighborhood, in the area between Belloni, Repetto, Rafael and Aparicio Saravia streets.
• Camino Cibils: widening, paving, construction of sidewalks and lighting.
• Avenida San Martín: widening and construction of bicycle paths.
• Avenida Italia: construction of overpass at intersection with Avenida Centaria, to facilitate vehicle access and circulation in the area of the Centenario stadium.
The original USD 250 million program included other works such as the landscaping of the Cerro bay and fort area, creation of a cultural and sports complex in the Flor de Maroñas neighborhood, construction of an overpass at the intersection of Avenida Italia and Boulevard Artigas, and financing of a new food products unit (relocation of the Modelo market) on the access to the city of Montevideo. These projects will depend on creation of another financial trust or obtaining alternative financing sources.