Environmental obstacles hold back billion-dollar infrastructure projects

Projects considered strategic for Brazilian infrastructure and logistics face delays due to environmental impasses, legal disputes and difficulties in dialogue with indigenous populations and traditional communities.

Among the projects affected are Ferrogrão, Fico (Center-West Integration Railway), the repaving of BR-319, the Tapajós Waterway concession and the demolition of Pedral do Lourenço.

One of the main complaints from the infrastructure sector is the delay in obtaining environmental licenses. Contacted by the report, Ibama (Brazilian Institute of the Environment and Renewable Natural Resources) stated that it adopts measures to ensure efficiency in processes, but highlighted that "the speed of processes is directly associated with issues affecting the quality of projects, legal matters and obligations of entrepreneurs".

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Despite facing significant obstacles to getting the works off the ground, in May, the federal government managed to move forward with some of these projects. The STF (Supreme Federal Court) recognized the constitutionality of the law that changed the limits of the Jamanxim National Park, in Pará, to enable the construction of Ferrogrão.

In this sense, the Ministry of Transport also managed to finalize the bidding for the four lots to repave the "middle section" of BR-319 and stated, at that time, that these contracts would be approved by the end of the first week of June.

When contacted, at the end of this period, the department stated that "by June all tenders will be completed and with a work order". The first batch has already been approved and the service order was signed at the end of May in the presence of President Lula.

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According to the ministry, the second batch will have the work order signed next week, while the contracts for the other sections will be signed by June 15th. As a result, the expectation is that all four lots in the "middle section" will be under construction by the end of this month.

Protests
Another recent impasse involved the concession of the Tapajós Waterway. During COP30, the federal government committed to indigenous leaders to carry out planned consultations following the guidelines of Convention 169 of the ILO (International Labor Organization), which determines free, prior and informed consultations in projects that affect traditional populations.

According to CNN, these consultations could cost R$30 million to the public coffers, which could make the project unfeasible. The high value is related to the need to hire specialized organizations to conduct the hearings, with command of the language and customs of the affected indigenous communities.

However, this agreement made at COP30 generated conflicts after indigenous people associated river dredging maintenance services with the waterway concession process. This movement caused protests, which reached a Cargill terminal in Pará.

After the repercussions, the government decided to revoke the PPI (Investment Partnership Program) decree that allowed the concession of the Tapajós waterway and two other waterway projects (Madeira River and Tocantins River). Industry agents assess that the decision generated regulatory uncertainty and could delay the concession schedule.

When contacted, the Ministry of Ports and Airports stated that technical studies are still ongoing and that the first phase should be completed in the second half of 2026.

The ministry also reported that it maintains coordination with the Ministry of Indigenous Peoples, Ibama, the General Secretariat of the Presidency and Antaq (National Waterway Transport Agency), "always guided by transparency and dialogue with the populations of the areas covered by the project".

New schedule
The work to demolish Pedral do Lourenço, in Pará, is also facing delays related to environmental discussions and dialogue with local communities.

According to the report, the project is awaiting a response from the Public Ministry to advance the next steps.

Recently, the national secretary of Waterways and Navigation, Otto Luiz Burlier, stated that the project did not encounter new legal challenges, that the expectation is to install the construction site in the second half of the year and that the planned detonations should be delayed until 2027.

The schedule has been changed since the beginning of May, when the plan was to implement the construction site by the end of the month and begin pilot interventions in July.

In the report, the Ministry of Ports and Airports stated that it works to ensure the "responsible and technically structured" progress of the work and declared that it maintains institutional dialogue with local communities, leaders and environmental agencies.

In turn, Ibama informed that the project has had an Installation License since May 2025 and that the project is in the implementation phase.

Among the main points monitored by the agency are impacts on aquatic fauna, fishing activity, riverside communities and socio-environmental compensation programs.

The former president of Ibama, Suely Araújo, who is currently coordinator of public policies at the Climate Observatory, stated that it was unclear how the bidding process would cover environmental issues in Tapajós.

He also stated that the region is "very sensitive from an ecological point of view", and has a large volume of indigenous lands, which could be affected by the bidding. Furthermore, Araújo mentioned that there are environmental impacts to dredging that were also not taken into consideration.

Loss to other projects
Fico (Center-West Integration Railway) also faces difficulties related to environmental issues and conflicts with indigenous populations. The railway was to be built by Vale within the agreement for early renewal of the company's railway concessions.

The company, however, informed the government that it is unable to execute the stretch between Água Boa (MT) and Cocalinho (MT), measuring around 100 kilometers, due to environmental obstacles related to indigenous communities.

In view of this, the mining company proposed returning the section to the government through compensation. However, according to the agreement, the amount that would be transferred to the public authorities would be R$2 billion, while the estimated cost to complete the section exceeds R$3.5 billion.

Last week, Infra S.A. held another round of conversations with leaders of the Xavante people, who are affected by the construction of this section of the railway. Since the beginning of the year, the municipality has been meeting with the communities impacted by Fico. To date, meetings have been held with representatives of the Pimentel Barbosa, Marechal Rondon and Parabubure indigenous territories.

Behind the scenes, there is an understanding that, if the construction falls under the responsibility of the Union, the section is at risk of not being executed due to lack of public resources.

However, the definition of who will be responsible for the construction of the railway is hindering not only the beginning of the works, but also the conclusion of the contractual renegotiation between the government and Vale.

In addition, the completion of this network is considered strategic to enable other railway projects planned by the Ministry of Transport.

When contacted, Ibama informed that the project has an Installation License valid until September 2026 for the stretch between Mara Rosa (GO) and Água Boa (MT) - complete layout of the corridor - and stated that the project continues to comply with the established environmental conditions.

Source: CNN