The Brazilian government has approved BRL 430 million ($128.9 million) in financing for CSN’s owned Transnordestina railway, the country’s Ministry of National Integration announced this week.
According to the Brazilian government, the financing will allow Transnordestina Logistica (TLSA) to resume works at its 1,073-mile railway. The project, initially estimated at BRL 7.5 billion and launched in 2006, was expected to be completed in 2010 but was delayed.
The Brazilian ministry said the financing will generate some 5,000 jobs. Out of the total financing granted by Brazil, BRL 300 million will come from the country’s Northeast Investment Fund (Finor), and the remaining BRL 130 million will come from other state-run infrastructure funding agencies.
Brazil’s government said the first installment of the financing, about BRL 152 million, will allow works at the railway to resume, while the rest of the money will only be granted as TLSA proves it is executing the needed works along 2017.
TLSA is a company fully owned by Brazil steelmaker Companhia Siderurgica Nacional.