Cuiabá VLT begins to be dismantled after costing BRL 1 billion – 03/08/2023 – Sport

Predicted to be in operation in the 2014 World Cup, the VLT (light rail vehicle) that would connect Cuiabá to neighboring Várzea Grande began to be dismantled by the government of Mato Grosso. Six kilometers of tracks that were already installed were uprooted.

One of the biggest scandals among undelivered public works in the country, construction has so far cost R$1.066 billion, all in federal funds. The trains that should be carrying passengers today share space with mountains of concrete, rebar and rubber. Just the rails, there are 24 kilometers of steel imported from Poland.

According to Governor Mauro Mendes (União Brasil), another R$ 760 million would be needed to finish the work and finally put the VLT into operation. Therefore, the management stated that it decided to transform the modal into a bus corridor, the BRT (Bus Rapid Transit, for its acronym in English) —which will cost R$ 480,500,531.82 to the state coffers, including the purchase of 54 buses articulated.

According to Renato Neder, professor at the faculty of administration and accounting sciences at UFMT (Federal University of Mato Grosso), the VLT implementation project in the state of Mato Grosso has several flaws since its inception.

“First, it was not discussed whether it was the most viable for Cuiabá and Várzea Grande. The BRT, for example, would cost a quarter of the amount and perhaps be more efficient. The way it was thought, the VLT line would not even reach the outskirts”, he says.

The specialist also criticizes what he calls a blunder in the accounts and execution of the work.

“BRL 1 billion was spent and they were not completed. So, to finish, that amount could double or triple. There are still several errors in execution, the most serious, and even comical, having bought the trains first of all”, completes Neder.

Authorized by Mendes, the consortium contracted to carry out the transformation from VLT to BRT has already dismantled six kilometers of the rail on Avenida da FEB, which connects the capital to Marechal Rondon airport.

The measure is being carried out in the midst of a legal dispute between the state government and Cuiabá.

The fight started after Mendes announced the exchange of the modal, still in 2020. In May of last year, the mayor of Cuiabá, Emanuel Pinheiro (MDB), obtained a decision from the TCU (Court of Auditors of the Union) to bar the change. But in September, the STF (Federal Supreme Court) accepted an appeal by the TCE (State Court of Auditors), which asked for the suspension of the TCU’s decision.

This allowed the start of dismantling, which began with the removal of electrical cables and catenaries (poles made of metal). The government says the material was taken to a secure location to prevent theft. Much of the mountains of remains of the works, however, are in free access areas, in which there is no security.

The 40 trains already purchased, in a total of 280 wagons, are under periodic maintenance by a specialized team from CAF, a manufacturer headquartered in Spain that is one of the members of the VLT Cuiabá-Várzea Grande Consortium.

A ruling by the 1st Federal Court of Mato Grosso attributes ownership of the trains to the government. The consortium says that, “by the companies’ liberality”, they have been maintaining the maintenance of the machines after the termination of the contract, done unilaterally by the state management in 2017.

The decision was taken after a series of delays. The initial contract was signed in June 2012 and the VLT should have been delivered within two years, before the start of the Cup. In March 2014, the deadline was extended by over a year —which would happen even more times.

According to the companies’ calculations, each kilometer of track implemented today is worth R$ 14.8 million. That is, the six kilometers removed so far represent almost R$ 90 million.

There is still no definition on what will be done with the material. A delegation from Rio de Janeiro even made a visit to the state to evaluate a possible purchase, but, so far, the idea has not advanced.

Meanwhile, the government of Mato Grosso is asking for compensation of R$ 1 billion from the consortium, which, in turn, charges R$ 420 million, in current values, for alleged works carried out and not paid by the state Executive.

For Ciro Biderman, professor of public administration and economics at FGV (Fundação Getúlio Vargas), the funds already invested in the VLT should be forgotten. “The money is gone, unfortunately. This really happens, with several works, but I don’t remember, recently, one the size of the VLT in Mato Grosso.”

“It’s impressive how billions sink into something quite debatable for simple aesthetics. Yes, it’s beautiful. But does it work? Is there demand? Cases of urban mobility projects that deliver less than expected are counted daily”, he completes.

Governor at the time the work began, Silval Barbosa said that the tender for the VLT had no irregularities. Later, in a plea bargain, he claimed to have received bribes.

Former secretary in charge of the works, Mauricio Guimarães stated in court that the work followed the governor’s decisions, supported by the technical staff.

Dilma Rousseff, who was president when the contract was signed, stated in previous interviews that she only authorized the loan of R$ 1.4 billion via Caixa and that the responsibility for the works rested with the government of Mato Grosso.

Sought again, Barbosa said he ratifies everything he has already said on the subject. Dilma’s advisory was not located this Tuesday (7).

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TIMELINE

Jun.12 State signs contract with Consórcio VLT Cuiabá for BRL 1.4 billion with a period of 24 months for the works

Mar.14 Granted a 12-month period for completion of the work (April 2014)

Jun.14 Date on which the system should be operating, according to the initial schedule

Dec.14 Government determines stoppage of works, claiming delays in the schedule, among other problems. The contract was paralyzed with 30% of the physical works completed and an expenditure of R$ 1.066 billion

Apr.15 With no understanding to resume the works, joint action by the State and the State and Federal public ministries results in the judicial suspension of the contract

Jan.16 KPMG presents a report pointing to BRL 602.7 million as the amount needed to complete the works. The consortium asked for BRL 1.2 billion

Mar.17 After the government’s request, KPMG presents an updated calculation, which indicates the need for R$ 889 million; after negotiation rounds, agreement is closed for BRL 922 million

Aug.17 Operation Descarrilho of the PF, to investigate alleged payment of bribes by the consortium to former governor Silval Barbosa; state government decided to unilaterally terminate the contract with the VLT companies. After the operation, management Pedro Taques unilaterally breaks the contract between the state and the VLT Consortium, alleging corruption.

Jun.19 Court of Justice of Mato Grosso upheld the unilateral termination of the contract between the government and the consortium. The companies appealed the decision to the STJ (Superior Court of Justice), which has already denied the appeals twice.

Dec.20 Governor Mauro Mendes announces the substitution of VLT for BRT

Dec.21 Governor Mauro Mendes pays almost R$ 600 million referring to the loan with Caixa for the VLT and settles the State’s debt.

Apr.22 Governor ratified the result of the bidding in April this year, in the amount of R$ 468 million

Dec.22 A company from the Construtor BRT Cuiabá Consortium begins the removal of the structures that would serve as support for energized VLT cables in the municipality of Várzea Grande