The Brazilian government has been skeptical over Companhia Siderurgica Nacional’s (CSN) investments at its 1,728 km Transnordestina railway. According to a government source, the Brazilian steelmaker should invest BRL 1.5 billion (USD 437 mn) to finish part of the railway that goes until the Pecem area in the state of Ceara. Another BRL 1.5 billion should be invested by the Brazilian government.
The Brazilian government doesn’t believe CSN could inject more money into the delayed project in order to complete the next phases of the initiative, which was expected to be completed in 2010. In this circumstances, the Brazilian government is likely to not pay for the investment alone.
Brazil could take the concession of the railway to CSN back, but it could also “legalize” the project, delaying it even more.
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