Union will receive R$1.2bn in indemnity from Ferrovia Centro-Atlântica S/A

This Thursday (11/28), the Ministry of Infrastructure is signing an agreement with Ferrovia Centro-Atlântica S/A (FCA), managed by VLI S/A, to pay an indemnity of R$1.2bn with the National Treasury’s funds. This is the largest amount to be received by the Union for pending railway concession contracts. The approval takes place at the headquarters of the Federal Public Prosecution Service in Minas Gerais.

FCA, which operates a total of 7,222 km in seven states and the Federal District (MG, RJ, SP, GO, BA, ES, SE, and DF) and operates in the transportation of various cargo, such as grains, sugar, fertilizers, and fuels, agreed to pay the compensation due to non-compliance with clauses provided for in ANTT Resolution No. 4,131/2013. At the time, the regulatory agency authorized the concessionaire to disable and return uneconomical rail sections. In return, FCA should have undertaken a series of investments/works in the Central-East Network.

As the investments planned since the signing of the resolution were only partially made, the Federal Public Prosecutor ended up filing three public civil actions regarding the lack of conservation of the concessionaire’s network sections. As of Thursday’s agreement and the payment of compensation, the lawsuits are closed.

“The intention of the ministry for signing the agreement is to promote the meeting of the economic demands of cargo and people transport, the safety and comfort of users, the reduction of travel time and the improvement of the population’s quality of life,” says substitute minister Marcelo Sampaio.

Indemnity

The agreement foresees that the FCA will pay R$1.2bn in 60 installments, updated by the IPCA, starting January 31, 2020. In the first three years, the monthly payments to be paid via the Union Collection Guide (GRU), will cost R$26.7m. In the last two years, the value of the installments is set at R$10m per month.

According to the clauses of the agreement, the funds will be used for studies, works, restoration, development, or implementation of infrastructure linked to the improvement of transport policy, within the rail sector, including urban mobility.

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