Importance of the Updated Project for RDAP/RADI

By Karine Atala e Adwair Guimarães, from the Economic Consulting & Projects team.

What Is a Technical-Economic Update Project?

The Superintendence of the Manaus Free Trade Zone (SUFRAMA), through Item II, Article 3, of Resolution No. 205/2021, defines an update project as an initiative aimed at adapting already approved projects to new realities. This adjustment may be motivated by various factors — technical, economic, market-related, or structural. In other words, an update project within SUFRAMA is not a new project, but rather a review and adaptation of an existing project to the current scenario.

Why Is It Important to Have an Updated Technical-Economic Project When Submitting the RDAP?

SUFRAMA implemented the Project Monitoring Report (RDAP) as a tool to monitor the Technical-Economic Projects (PTEs) of companies benefiting from its incentives.The RDAP evaluates the company’s performance by comparing projected indicators with actual results, taking into account the sum of all active projects of the company.In this context, keeping the PTE updated is crucial to ensure the company’s success in the RDAP assessment.

What If the Technical-Economic Project (PTE) Is Very Old and No Longer Reflects the Company’s Reality?

This is a situation faced by many companies. The problem arises when indicators projected under circumstances that no longer reflect the company’s current reality show a significant deviation from the actual results.Whenever this situation is identified, the company must submit justifications, and SUFRAMA may recommend updating the project.

The Updated Project as a Facilitator for RDAP Approval Success

Achieving the minimum performance level required by SUFRAMA is essential for RDAP approval, avoiding the need for detailed justifications to the Agency and preventing further penalties.Maintaining an updated project ensures that the indicators are aligned with the company’s current reality, facilitating goal achievement and RDAP approval.

Moreover, an outdated project may lead to significant discrepancies between actual indicators and those reported in the RDAP, increasing the risk of report rejection and, consequently, loss of federal tax incentives.