Brazil approves BRL 2.89 bn from Merchant Marine Fund for 19 navigation projects

The Board of Directors of the Merchant Marine Fund (CDFMM) approved the allocation of BRL 2.89 billion for 19 projects on Thursday (14). These projects involve the construction, modernization, conversion, dry docking, and repair of vessels, as well as the acquisition and installation of equipment for inland (river) and maritime navigation.

According to the Minister of Ports and Airports, Silvio Costa Filho, this was the largest approval of inland navigation priorities in recent years. “Just for the construction of pushboats, barges, and convoys, we’re talking about approximately BRL 1.5 billion, which represents an incentive for the improvement and promotion of navigation through navigable rivers. We will continue to advance,” the minister stated after the Council’s deliberations.

The CDFMM resolution listing the prioritized projects will be published in the Official Gazette, and companies will be eligible to secure financing through the following affiliated financial institutions: BNDES, Banco do Brasil, Caixa Econômica Federal, and BASA.

Minfra Resolution No. 1,460/2022, which approves the procedures and rules for granting priority by CDFMM, establishes a deadline of 450 days for financing agreements for new projects and 180 days for the extension of projects previously prioritized by CDFMM.

The Fund can finance up to 90% of the requested project’s value. The financing cost with FMM funds will depend on the percentage of domestic content and the type of vessel, with these conditions defined in CMN Resolution No. 5,031/2022.

Schedule

The deadline for submitting projects for the next CDFMM meeting, which will take place on December 7, 2023, closes on October 9. Proposals should be submitted to DNHI through the federal government’s electronic system – SUPER.

For more information on submitting requests to CDFMM, you can contact [email protected].

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