President Luiz Inácio Lula da Silva liberated R$ 99.649 million yesterday for a stretch of the North-South Railroad (Ferrovia Norte-Sul) between Aguiarnópolis and Palmas in Tocantins. The liberation was made through Provisional Measure (MP) 336, which also earmarked R$ 125.299 million for the National Department of Transportation Infrastructure (DNIT) for federal railroad projects. Of this total, R$ 59.789 million will be used for highway maintenance.
Of the total, the MP distributed R$ 385.263 million to the Transportation, Sports, Mines and Energy (MME), National Integration and Cities ministries. Some R$ 40.207 million was set aside for projects in ports and avian grip contingencies.
The MME will receive R$ 10 million, to be invested in electric sector planning. Another R$ 30 million will go into infrastructure for the 2007 Pan-American Games in Rio.
The North-South Railroad is expected to be among the priorities in the infrastructure investment package being prepared by the government. The initial idea was to sub-award the railroad (which is a concession belonging to a government-owned company, Valec) to the private sector and use the funds obtained through the auction to conclude the project. However, the Federal Accounting Court suspended the auction in September.
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