Minister assures interested parties in the 1st railroad auction

The Minister of Transports, César Borges, assured on this Thursday that there are investors interested in the bid of the first section of railroad of the Logistics Investment Program (PIL). The Midwest Integration Railroad (Fico) connects Campinorte (Goiás) to Lucas do Rio Verde (Mato Grosso) and will have its RFP assessed by the Union’s Court of Accounts (TCU) on Monday.

– I have interested parties, but I do not take any guarantees. Fortunately, with roads, you have seen what has happened (depreciations and huge number of competitors). We have interested parties. (How many,) that’s trade secret.

Throughout the year, the government feared that the first railroad bid could be deserted, without proposals from interested parties, as it has occurred with the BR-262 between Minas Gerais and Espírito Santo, in the first block of highway concessions.

The minister also foresaw the Fico bid for the first quarter of next year, but made clear that he expects the court’s decision. In the case of harbor lease bids, the government had to revise its outlook to auction later this year to tailor RFPs to 19 conditions imposed by TCU.

– On Monday I hope we can approve this first section. After that, I think the others will come in an easier sequence.

According to the Minister, the Fico project foresees investments in the order of R$6 billion (Brazilian Reais). The concession period is 35 years, renewable once. The railroad should address the need for transport of grain from the interior of Mato Grosso and connect to the North-South railroad, where the compositions may reach ports for export.

In a presentation at the Industry National Meeting, in Brasília, the Minister took the opportunity to criticize the difference between the remuneration of the Government servers and the inspection agents. The statement came after a speech from Minister Aroldo Cedraz, from TCU.

– The inspection sectors earn much better than execution sectors in Brazil. This is a distortion. Who is executing is earning far less than those who are inspecting. We have to discuss it.