Even with recent advances, projects still face doubts

Even with recent advances in projects considered strategic by the federal government, major infrastructure works remain surrounded by uncertainty. Favorable court decisions, the resumption of bidding and the unlocking of regulatory stages helped to boost projects such as Ferrogrão and BR-319, but the projects still face challenges related to environmental licensing, financial viability, institutional governance and dialogue with indigenous communities and control bodies.

After five years of legal discussions, the STF (Supreme Federal Court) formed a majority to recognize the constitutionality of the law that altered the area of the Jamanxim National Park, in Pará, to enable the construction of Ferrogrão.

The project foresees a railway between Sinop (MT) and Itaituba (PA) to expand the flow of agricultural production in the Center-West.

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At the trial, the case's rapporteur, minister Alexandre de Moraes, reinforced that the project will continue to depend on environmental licensing and specific technical studies.

Minister Flávio Dino even proposed additional conditions for the advancement of the project, including the exact definition of the railway route before applying for environmental licensing and the prohibition of further reductions in the Jamanxim National Park for future changes to the network.

The minister also defended that indigenous lands cannot be reduced again to implement the project and that indirect impacts on traditional communities should generate the right to financial compensation for these populations. However, the suggestions were not incorporated.

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The case was removed from the STF's agenda in April due to lack of consensus among ministers and returned to the plenary after Gilmar Mendes demanded that the President of the Court, Edson Fachin, be suspended about trials considered relevant.

Despite the STF's decision, the project still has a long way to go before it gets off the ground. Approval unlocks the concession, but it is still necessary to review and update the railway studies, which could lead to new public consultations and restarting stages of the licensing process.

In addition, there are doubts about whether the country will be able to attract companies and investment funds that can provide the high volume of resources needed for this railway. The latest studies, carried out in 2022, estimate investments close to R$25 billion, in addition to around R$4 billion in public contributions via cross-investments.

Another point considered decisive is obtaining environmental licensing. According to Ibama, the project is in the initial phase of the process.

The agency stated that adjustments are still needed, such as updating environmental studies; incorporation of recent data on climate change, use and occupation of the sun; in addition to expanding the analysis of cumulative impacts and potential effects on conservation units and indigenous lands.

The coordinator of public policies at the Climate Observatory, Suely Araújo, who previously served as president of Ibama, stated that the environmental impacts included in the project are "insufficient" and would also need to address the indirect effects of the construction of the railway.

Bid completed

Another project that recently advanced was the tender for paving the so-called "middle section" of BR-319, the highway that connects Manaus (AM) to the rest of the country. The government's expectation is to begin work on all lots by the end of June.

The process, however, also faced legal disputes. The bidding was suspended by the TRF-1 (Federal Regional Court of the 1st Region) one day before the opening of proposals, in April. The decision was reversed hours later, but the event had to be postponed.

The suspension request was made by the Climate Observatory. In this sense, Suely Araújo stated that the entity is not against paving the highway.

In a conversation with CNN, she pointed out that the questions about the bid are based on the argument that this service needs to follow all the rites and include the necessary conditions to avoid an increase in deforestation in the region.

"We question the preliminary license granted by the Bolsonaro government, because it does not have elements to control deforestation. It is estimated that, with paving, deforestation in the region will multiply by four. The second reason is that, when you read the 2022 preliminary license, it does not have robust governance devices and measures to control environmental impact", he said.

The entity also questions the government's understanding that the new Environmental Licensing Law eliminates the need for a new Ibama license to carry out paving.

In the understanding of the federal government, the new law allows pre-existing infrastructure to have maintenance interventions without the need to issue an environmental license. For the Climate Observatory, these works will require the reconstruction of some sections of the highway, which, in the entity's understanding, is not characterized as a maintenance service.

BR-319 has faced impasses for decades and has been without intervention since July 2024 due to court decisions.

The government argues that the highway is one of the only land links between Amazonas and the rest of the country and that the lack of maintenance increases the risk of accidents and increases logistical costs. Environmentalists, on the other hand, point to the risks of increased deforestation, land grabbing and pressure on sensitive areas in the Amazon.

The federal government maintains that, with recent changes in environmental legislation, maintenance services on existing structures can occur without the need for complete environmental licensing.

In 2023, the Ministry of Transport created a working group to discuss solutions for the BR-319 repaving project. Among the conclusions presented by the panel is the understanding that the highway is strategic for the integration of the Amazon region and that the lack of adequate infrastructure contributes to the advancement of deforestation and irregular occupation. The group also pointed out that it is possible to reconcile regional development and environmental preservation along the logistics corridor.

The 68-page report also highlighted that the main obstacle to implementing the project is the lack of coordination between the different bodies involved. "Today, the main challenge for the completion of the project is the lack of governance between the various bodies and entities competent to act in each aspect of the project", says the document.

According to the Ministry of Transport, the recommendations prepared by the working group were incorporated into the bidding model for the repaving of the highway. However, when questioned several times by the report about which measures were actually included in the project and how this occurred, the department did not detail the changes.

Source: CNN