Government signs 9 railroad contracts with private initiative on Thursday

The federal government will close 9 contracts for the construction and operation of railways with the private sector this Thursday (9), which occurs in parallel with the analysis, in the Chamber of Deputies, of the Legal Framework for Railways.

The government estimates that around R$ 52 billion will be invested in the construction of 3500 kilometers of railways in 10 units of the federation.

The solemnity ceremony for the closing of the agreements will be held at 4 pm, in Brasília. In addition to President Jair Bolsonaro (PL), the presence of ministers Paulo Guedes (Economy), Tarcísio de Freitas (Infrastructure) and Tereza Cristina (Agriculture), as well as governors and representatives of the sector, are also expected.

In the Chamber, lawmakers debate a bill on the subject that has already been approved by the Federal Senate. Authored by licensed senator José Serra (PSDB-SP), the bill discusses new rules for the sharing of railways.

The text deals with new licensing instruments for railways in the private regime or with minimal State participation, and also contains technical definitions to harmonize the sector’s legislation.

The PL also establishes that the railroads operate under an authorization system, not a concession, which eliminates the need for a bidding process to start the works. With that, the interested company presents a proposal that, if approved, starts immediately in the railways.

Currently, the Provisional Measure (MP) published by the Bolsonaro government in August, made to speed up contracts while the PL is discussed in the Legislative, is still valid.

*Published by Giovanna Galvani, from CNN, with information from Agência Senado