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Benefiting from pre-salt royalties and special participation, Niterói and Maricá will have billions of dollars in savings in decades with the amounts collected
The cities of Niterói and Maricá, belonging to the metropolitan region of Rio de Janeiro, had their revenues from pre-salt oil exploration more than quadrupled in the last two years (between 2016 and 2018).
To give you an idea, in 2018, the collection exceeded for the first time, the order of 1 billion reais, which led the municipalities to create a fund to save part of the collections and with that they already accumulate 100 million each.
Cities expect, in the coming decades, with the growth of pre-salt exploration, to increase these savings a lot, Maricá alone expects to receive something around 14 billion in 8 years.
Niterói and Marica expect to increase public investments, since they still depend heavily on royalties to cover their costs.
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Municipalities' plans
In Niterói, according to the budget law, half of this collection will be used to cover expenses and only 1/3 for investments.
According to the Niterói farm secretary, Giovanna Victer, the typical activities of a municipality are related to funding, such as cleaning and conservation, health and fundamental education, and now even public safety, but the administration of the city hall will have to prioritize what is priority and what can be spared.
By law, Niterói has to deposit 10% of each transfer of special participations in the revenue equalization fund, savings already accumulate R$ 102 million and the forecast is to reach R$ 2,5 billion by 2040.
The municipality of Maricá deposits between 1% and 5% of royalties collected monthly, already has R$ 106 million and expects to reach R$ 1,8 billion in 10 years.
Marica's planning secretary. Leonardo Alves, declared that the idea is that in the future the fund will help to pay for investments and expenses with social programs, such as direct transfer of income and another one of free public transport.
The idea is also to use these resources to finance Public Private Partnerships, to guarantee a good environment for investors who wish to go to Maricá.
Over the last 10 years Maricá has invested in new ventures, such as the R$ 10 million spent on renovating the city's airport so that it serves as a base for transporting employees from Petrobras platforms.
