Uruguay has opted for a US$575 million electric BRT system to modernize public transport in the Montevideo metropolitan area, with tram and metro alternatives set aside for the time being because of their significantly higher costs. The Metropolitan Transportation System Agency (ASTM) technical assessment study estimates that the BRT would require an investment of around US$575 million to accommodate projected demand, compared with approximately US$1.544 billion for a tram system and US$5.053 billion for a metro system. According to a comparative analysis by Redes México, Redes Brasil and AIC Economía & Finanzas, the BRT also offers lower operating and maintenance costs. Over 30 years, its total cost of ownership is estimated at US$1.043 billion, compared with US$2.096 billion for the tram and US$5.168 billion for the metro.

The first phase of the project will cover two corridors: 8 de Octubre–Camino Maldonado–18 de Julio and Avenida Italia–Giannattasio, using bi-articulated buses capable of carrying up to 220 passengers. The system will feature dedicated segregated lanes, stations, grade-separated crossings at major intersections, an underground section along 18 de Julio Avenue and an interchange terminal at Tres Cruces, where the two corridors will connect. The decision to adopt a BRT system is also based on projected passenger demand. The 8 de Octubre–Camino Maldonado corridor currently carries around 4,300 passengers per hour per direction at its busiest section, while the Italia–Giannattasio corridor handles approximately 2,500 passengers per hour per direction. When the two corridors converge along 18 de Julio, demand rises to about 6,800 passengers per hour per direction. These levels are below the threshold considered necessary to justify a heavy metro system, which is typically viable at demand levels exceeding 20,000 passengers per hour per direction.

The project also has substantial external financing commitments. In 2025, the Inter-American Development Bank (IDB) approved a US$500 million conditional credit line for the initiative, while CAF approved an additional US$300 million loan in December as part of a broader US$980 million financing package for Uruguay. The tender for the new transport model is expected to be launched in Q4 of 2026, with construction targeted to begin in 2027 and the system scheduled to become operational by 2029. The Ministry of Transport and Public Works has also initiated expressions of interest with IDB, CAF and the World Bank as part of preparations for the project. The technical studies outline a 15-year expansion plan that would eventually connect at least five radial corridors and two transverse axes across Montevideo, Canelones and San José. Future extensions could expand the network toward Ciudad del Plata, Cerro, Progreso and Punta Carretas.

From an environmental perspective, the electric BRT is projected to consume around 12 GWh of electricity annually, compared with 25 GWh for the tram and 22 GWh for the metro. The system is also expected to significantly reduce emissions from the existing transport network, from approximately 20,833 tonnes of CO₂ per year to 132 tonnes annually.