The Federal Government of Brazil shall spend R$ 5.6 billion on the refurbishment of thirteen airports and also R$ 740.7 million for the modernization of seven seaports. This is what is planned by the document of addendum to the Responsibilities Matrix for the 2014 World Cup, which was signed today, in Brasília, by President Lula and also the Ministers for Sports, Ports and Planning, and also representatives from the Brazilian Airports Authority (Infraero), and Brazilian States and Municipalities. At the event, President Lula also signed a Provisional Measure that raises the debt capacity of the cities which shall be hosting the 2014 World Cup and also criticized the Government of São Paulo for their lack of definition of the stadium to host the World Cup matches.
This document of addendum also defines the resources and schedules of the work for the two areas. These funds shall be used for the revitalization of port terminals in Salvador (BA), Recife (PE), Natal (RN), Fortaleza (CE), Manaus (AM), Rio de Janeiro (RJ) and Santos (SP) and also thirteen airports in the twelve host cities. The Minister for Sports, Orlando Silva, also remembers that, in the case of the airports, there is a need for improvement which can already be felt today, and that he is convinced that the projects of Infraero shall comply with the time frames established for the sporting events mentioned in the Matrix.
Municipalities may get further in debt
On that occasion, President Lula also signed a provisional measure (MP) increasing the debt capacity of the municipalities, so that they may take out funding for their respective work towards the 2014 World Cup and also for the Olympic Games of 2016. The MP proposes a treatment based on exceptionality for the municipalities to host the games, for credit operations intended to finance infrastructure projects, authorized by the National Monetary Council (CMN).
Mr. Silva also stressed that this measure does not in any way change the Tax Responsibility Law (Lei de Responsabilidade Fiscal - LRF). "This will mean a greater volume of investment in infrastructure and also a greater capacity to take out further funding”, he said. The new rules shall only be valid for the municipalities, which shall only need to obey the terms of the LRF, which establishes a debt level of up to 120% of the total income generated by the municipality. The states and also the Brazilian Federation shall continue also to obey the provisional measure No. 2185, which states that the parties are required to bind up to 100% of their net income.
For Lula, the definition of increased debt capacity of the municipalities and also the conditions as established in the Responsibility Matrix seek to avoid a repetition of the excess spending seen in the Pan-American Games held in Rio de Janeiro. “I think that this (the Responsibility Matrix) is very important to make sure there is no repeat of what happened in the Pan-American Games. Many times we thought of striking an agreement between the Municipal, State and Federal Governments. However, it was not possible”, he said. He also remembered that the expenses for hosting the aforesaid Games, which were originally less than half a billion Brazilian Reais, ended up reaching a total of R$ 2 billion.
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12/01 | News
