The Federal Court of Accounts (TCU) of Brazil prohibited new transfers of public funding to the Transnordestina railway project, which belongs to the Companhia Siderúrgica Nacional (CSN). The work for the railway line began with a poorly formulated project and excessive public financing, the TCU said, justifying its decision.
Under construction for ten years and with no date set for conclusion, the Transnordestina is supposed to link Porto de Pecém (Ceará) to Porto de Suape (Pernambuco). According to the most recent data available, until 2012 R$4.3 billion (1.08 bn euros) in public funding had already been invested in the project. The project, which is currently budgeted at R$11.2 billion (2.8 bn euros), has been financed by banks, public sector funds and state companies.
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