IDB and MInfra Will Invest US$ 450 Thousand in the Development of Railway Projects in Brazil

Written by Roberta Souza

Published on 13/10/2020 at 08:12

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The Ministry of Infrastructure – MInfra and the Inter-American Development Bank – BID signed a technical cooperation agreement to support the development of railway projects. A total of US$ 450 thousand will be allocated to improve the railway modal in Brazil. Under the terms signed in the contract, instruments will be developed for the preliminary analysis of projects in order to stimulate optimization and improvements in the railway transport system. With the modernization of assets, it is expected to attract more attention from investors.

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Natália Marcassa, Secretary of Promotion, Planning, and Partnerships of MInfra, said that “The technical cooperation established with BID will help us greatly in the regulatory improvement of railway concessions. From this partnership and the resources we will receive from BID, an important step will be taken to strengthen the railway modal. This is a fundamental initiative to advance the balance of our transportation matrix.”

The project will invest US$ 450,000, which also includes the analysis of other financial instruments to promote greenfield and brownfield railway infrastructure projects. Additionally, it includes the analysis of existing needs for research and risk assessment of the socioeconomic sustainability of installed systems, research on the impact of railway transport projects for cargo or passengers, review of federal regulations, workshops, and events to promote the exchange of experiences.

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Morgan Doyle, the BID representative in Brazil, said that “We want to help Brazil do more with less, and we know that the railway sector can not only boost the economy, generating jobs and reducing logistics costs but also contribute to the reduction of greenhouse gas emissions.”

Last week, the Brazilian Institute of Environment and Renewable Natural Resources (Ibama) granted a license for the installation of the Integrated Midwest Railway (FICO). Therefore, from an environmental protection perspective, these projects could start as early as next year. The extension of 383 kilometers will connect the Araguaia Valley, a productive and developing region of Mato Grosso, with the North-South Railway, which will facilitate the flow of produce to Santos (SP), Itaqui (MA), and eventually Ilhéus (BA).

IDB and MInfra Will Invest US$ 450 Thousand in the Development of Railway Projects in Brazil

One Of The Railway Projects Under The Partnership Between BID And MInfra Was Approved By Ibama For The Installation Of The Midwest Integration Railway

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