Last Wednesday (March 23rd), the Congressmen of the State of Rio Grande Norte unanimously passed the Bill of Law that releases a total of R$ 70 million from oil and gas royalties to serve as a guarantee for the construction work on the Estádio das Dunas. This shall be erected for the 2014 FIFA World Cup™.
The funds that have been approved shall be part of the guarantee fund for the Private-Public Partnerships (PPPs) in Rio Grande do Norte, which also includes R$ 230 million in property.
The Estádio das Dunas shall be constructed and operated by OAS. In March, the company won the tender process for this stadium, with one single proposal.
However, the start of the work may still be delayed as it also depends on the demolition of the Machadão Stadium which could be put back due to queries from the State and Federal Prosecution Offices in Rio Grande do Norte (read more).
The organizations have asked the Government for correction of irregularities in the tender documents, and have also recommended that the National Bank for Economic and Social Development (Banco Nacional de Desenvolvimento Econômico e Social - BNDES) block the loan for this work project.
Royalties
If the project does indeed go ahead, the royalties shall be used in the following way: R$ 15 million shall be deposited in a bank account held by the Government within 72 hours after signing the contract with OAS.
The remaining R$ 55 million shall be paid in 24 monthly payments, each of R$ 2.3 million, thereby using up 20% of the average total royalties received by the State of Rio Grande do Norte, already deducted and which is sent on the oil-producing municipalities.
“This money shall be in a Government account, making interest, and can be used in the future. It shall only be used in case the Government fail any monthly payment of the counter payment of the Public-Private Partnership (PPP)”, said the Head Secretary of the Chief of Staff, Paulo de Tarso Fernandes.
The Government of the State of Rio Grande do Norte hopes that the Service Order and the contract with OAS may be signed next week, also depending on the certification and adjudication of OAS, which are expected to take place today.
According to Demétrio Torres, the State Secretary for the World Cup, the contractual amendments as recommended by the Prosecution Office do not prevent the signature of the Service Order.
highlights
04/05 | News
