Brazilian court suspends public funding for CSN’s Transnordestina railway project

Monday, 23 May 2016 23:42:47 (GMT+3)   |   Sao Paulo
       

Brazil's audit court, TCU, has suspended public funding for Companhia Siderurgica Nacional’s (CSN) Transnordestina railway while “indications of irregularities” are investigated, TCU said.

TCU said it will investigate alleged irregularities committed by Brazil’s ground transportation agency, ANTT, which is said to have approved contracts without issuing a bid for the CSN-owned Transnordestina railway, which will stretch about 1,728 km (1,073 miles).

TCU said it will hear both ANTT and the companies involved with the construction of the railway.

According a TCU document signed by a Brazilian minister, ANTT “authorized works at the railroad before it approved the railroad’s projects.” ANTT hasn’t also “verified the consistency of the respective budgets [proposed by the companies competing in the bid to construct it].”

Despite being a private project owned by one of Brazil’s largest steelmakers, CSN, the Transnordestina railway used to receive money from state-run banks and other entities.

The project was initially estimated at BRL 7.5 billion and was launched in 2006. Completion of the initiative was expected to 2010. As of now, there’s no deadline for the project to be completed.



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