The draft addendum of the updated contracts will now be sent back to the National Land Transport Agency (ANTT), which will analyse the recommendations and include the determinations made by the TCU’s reporting minister, Mr Bruno Dantas.
The judgment includes a stipulation that ANTT must send the final document to TCU for review 15 days before the contract is expected to be signed.
The new contracts include investments of Reais 8.5bn ($US 1.5bn) in EFVM and Reais 9.8bn in EFC over the 30 years of the concession, which will run until 2057.
Reais 2.8bn will be allocated for the acquisition of a new fleet for both railways, and another Reais 370m will be reserved for work to resolve urban conflicts in 55 municipalities. An additional Reais 11.3bn will be invested in maintaining operation during the term of the new contracts.
Vale will pay the government a grant worth approximately Reais 2.2bn for both railways.
Cross-investment
For the first time, the contract extension provides for the use of a cross-investment mechanism that, in this case, will be used for the construction of the Central-West Integration Railway (Fico). Reais 2.73bn is allocated for Vale to build the stretch between Mara Rosa, Goiás, and Água Boa, Mato Grosso, which will carry soybean and corn from the Araguaia Valley to the North South Railway (FNS).
The 72km extension of the Vitória Rio Railway between Cariacica and Anchieta was included in the list of additional investments. Vale will be responsible for the project and carrying out works for the line.
“ANTT has committed itself to include in the draft addendum a periodic review mechanism applicable to the revenues earned by the concessionaire, similar to what was done in the extension of Malha Paulista (Rumo),” Dantas says.
