The Ministry of National Integration will contribute Reais 300m through the Investment Fund for the Northeast (Finor), while the remaining Reais 130m will come from the Ministry of Transport, Ports and Civil Aviation via the federal railway engineering and construction company Valec.
According to national integration minister Mr Helder Barbalho, Finor will release an initial tranche of Reais 152.7m to enable works to resume this year. The transfer of the remaining funds from Finor is contingent on the project’s progress during 2017.
The ministry said in a statement that Transnordestina Logistica, which is responsible for construction, has agreed to submit a work plan for resumption of the project within 50 days.
Transnordestina has already received around Reais 6.3bn, including Reais 3.4bn in federal financing. According to the government’s initial cost projections, a further Reais 5bn will be needed to complete the project.
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