Brazilian steelmaker Companhia Siderurgica Nacional (CSN) said on Wednesday its Transnordestina railway is now allowed to receive public funding.
According to a document filing, a previous decision by the nation’s audit court, TCU, which suspended public funding for the Transnordestina railway was revoked, and as such, public investment aimed to building the project should continue.
CSN added it can now receive public investment from the following companies: Valec Engenharia, Construções e Ferrovias S.A., Finor, FNE, FDNE, Brazil’s development bank (BNDES), BNDES Participações and BNDESPar.
Late in May, TCU suspended public funding for the project until “indications of irregularities” were investigated.
At the time it said it was investigating alleged irregularities committed by Brazil’s ground transportation agency, ANTT, which is said to have approved contracts without issuing a bid for CSN’s owned Transnordestina railway.
The railway is about 1,728 km (1,073 miles) long.
According a TCU document signed by a Brazil 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 is no deadline for the project to be completed.