Cláudio Castro removes works from pre-election package in RJ – 10/12/2023 – Power

The governor of Rio de Janeiro, Cláudio Castro (PL), removed major infrastructure works from the investment package launched a year before the election from the list of priorities.

The construction of the light metro in Baixada Fluminense and the extension of a highway in the same region are under reassessment within the RJ Pact, a set of investments launched in 2021 and one of the governor’s campaign platforms.

According to the government, the two works were affected by the reduction in the ICMS rate on fuels, a measure taken by former president Jair Bolsonaro (PL), an ally of Castro, to reduce political strain in the election year caused by high inflation.

The removal of the two major investments from priorities is yet another setback for the RJ Pact. Audits by the TCE (State Audit Courts) show a lack of budget to complete investments already contracted in various bodies, leading to the stoppage of works.

The Baixada light metro hasn’t even started yet. The initial forecast was that the work would begin in January of last year. Despite the delays, the government kept the plans in place. Two public hearings were held in May and June last year, and the project continued to be part of Castro’s promises.

Throughout 2023, however, the priority was changed. The Pacto RJ website no longer includes the work in the list of planned actions. The project only appears in a list of initiatives to be included in the 2024-2027 multi-annual plan. According to the portal’s own explanation, the relationship has an “indicative nature” and the execution of the items described there “may or may not come to fruition”.

On the same list is the expansion of Via Light, a road that crosses Baixada Fluminense, to the Presidente Dutra highway. The project, estimated at R$730 million, had a public hearing held in March last year, with an estimated deadline of two years.

The government stated, in a statement, that it is “reevaluating projects and carrying out works according to priorities, due to the drop in revenue caused by the reduction in the ICMS rate”.

“The state has made efforts to contain expenses and increase revenue. The expansion of Via Light and the works on the light metro in Baixada are among the interventions under analysis”, stated the state government, in a note.

These were the largest infrastructure works in the RJ Pact. They are second only to the implementation of the new water treatment plant in Guandu (R$ 2.4 billion), currently underway.

The program launched in 2021 by Castro has more than 800 projects, which include improvements to state highways, construction of squares, bridges and social facilities. The RJ Pact was launched shortly after the concession of the basic sanitation service, which yielded R$22.7 billion to the state coffers. The grant collected funds around 60% of the program.

Castro denied a link between the launch of the program and his re-election campaign last year. However, the great works foreseen in it were part of his speeches.

Audits carried out by the TCE show that the lack of budgetary coverage also affects smaller works spread across the state. The court pointed out that five bodies with Pacto-RJ contracts do not have the money available to fulfill all the agreements already signed this year.

The most serious situation detected is in the DER (Department of Roads and Highways). According to the court’s report, the agency’s budget shortfall “is causing default by its contractors, which could result in future damage to the treasury, with interest charges and
monetary correction for measurements not paid due to lack of budgetary allocation”.

A similar situation was also found at the Housing Company, Public Works Company, Faetec (Technical School Support Foundation) and Secretariat of Infrastructure and Cities).

In a statement, the government stated that the “volume of suspensions is considered within normal limits, given the complexity of carrying out public works (withdrawal of the winning company, deficiency in project preparation, environmental licensing, internal and external control decisions, etc. )”.

The government also declared that, of the total of R$15 billion and 867 actions under the RJ Pact, only 3.8% are subject to some type of suspension.