Brazilian Government Allocates R$3.44 Billion for Naval and Port Infrastructure Initiatives

The Merchant Marine Fund Board of Directors (CDFMM) has approved financial support totaling R$3.44 billion for 21 naval and port infrastructure projects. Interested companies will be eligible to secure financing from accredited banks.

However, MPor has identified 22 projects necessitating a total investment of R$5.6 billion. Proposals encompass shipyard modernization, construction of oil ferries, repairs to various vessels, and the development of terminals across different states. Projects span across various Brazilian states, including Rio de Janeiro (8), São Paulo (5), Bahia (2), Maranhão (1), Santa Catarina (2), Amazonas (2), Pará (1), as well as international sites like Vienna, Austria. The Port of Santos wasn’t included in this list.

“Initiatives aimed at expanding, modernizing, and altering shipyards were included, as well as extending deadlines for vessel construction projects,” stated Dino Antunes Dias Batista, the National Secretary of Waterways and Navigation and president of the CDFMM.

Merchant Marine Fund

The Merchant Marine Fund, overseen by MPor through CDFMM, offers financial coverage of up to 90% of project costs, with financing available at reduced interest rates based on factors such as the percentage of national items, vessel type, or Brazilian company involvement. New projects have a contracting period of 450 days, while previously prioritized projects can be extended within 180 days.

Jackson Campos, Director of Institutional Relations at AGL Cargo and a Foreign Trade specialist, emphasized the significance of such financing in propelling the sector forward. He stated, “From oil companies benefiting from the construction of floating platforms to direct and indirect workers involved in vessel construction, modernization, docking, conversion, and repair, the impact is substantial. The amount is made available by the FMM in a reimbursable manner through loans from accredited banks.”

Campos clarified that the agreement between the ministry and financial agents should outline the procedures for disbursing FMM resources. “The beneficiary has 120 days to request financing after the resolution’s publication and must inform the Department of Infrastructure Promotion and Development (Defom) within 15 working days. After contracting, the financial agent must provide Defom with a copy of the contract, the physical-financial schedule, and the updated Table of Uses and Sources for each project.”

He further outlined that the credit agreement should stipulate an exclusive bank account for each vessel, shipyard, or infrastructure project to manage all project funds. It should also include subcredits for individual project components, distinguishing between national and imported items. Additionally, provisions for early debt maturity should be included if work commencement does not meet the specified deadline. Finally, resources should be disbursed directly to the Brazilian company executing the project if the beneficiary is foreign.

Source: A Tribuna

Click here to read the original news report: https://www.atribuna.com.br/noticias/portomar/fundo-da-marinha-mercante-aprova-r-344-bilhoes-para-projetos

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