Brazilian steelmaker Companhia Siderurgica Nacional (CSN) said it is expecting approval from authorities to resume construction of its unfinished Transnordestina railway. The project, initially estimated at BRL 7.5 billion and launched in 2006, was expected to be completed in 2010.
The company’s CEO, Benjamin Steinbruch, said the BRL 1.24 billion in public funding approved in July could be used to restart construction, however, the steelmaker is waiting for approval from authorities.
Steinbruch met with Piaui state governor, Wellington Dias, and said that since the BRL 1.24 billion is released, workers should be hired and works in the state of Piaui resumed.
“We want to finish works in the state of Piaui soon … so we can guarantee the railway can be used to transport agricultural products and iron ore. We estimate to finish part [of the project] in H1 2018. Then we should focuse in the Ceara-Pernambuco state extension of the railway,” he said.
The Transnordestina railway was allowed in July to receive public funding, after a previous decision by the nation’s audit court, TCU, which suspended public funding for the Transnordestina railway, was revoked, allowing investment aimed to building the project to continue. Late in May, TCU suspended public funding for the project until “indications of irregularities” were investigated.
At the time it said it was investigating alleged irregularities committed by Brazil’s ground transportation agency, ANTT, which is said to have approved contracts without issuing a bid for CSN’s owned Transnordestina railway. The railway will extend about 1,728 km (1,073 miles) in length.
Despite being a private project owned by one of Brazil’s largest steelmakers, CSN, the Transnordestina railway used to receive money from state-run banks and other entities.