Fundação Renova

Municipalities of the Doce River Basin eligible to receive R$ 500 million for sewer system installation

Published in: 04/05/2018

Water Management

Renova Foundation to transfer funds through BDMG and Bandes, to towns impacted by the Fundao dam collapse

Local governments of the 39 municipalities affected by the collapse of the Fundao dam were approved eligible to receive R$ 500 million for sewer system installation. The transaction is one of the compensatory measures the Renova Foundation developed and will be processed through the Minas Gerais Development Bank (BDMG) and Espirito Santo Development Bank (Bandes). In addition to the funds, municipalities can count on technical support services for the development of their projects.

This Thursday, April 5, the contract will be signed by the 35 municipalities of Minas Gerais during the Forum of Mayors in the town of Rio Doce. A similar event will be held with the four municipalities of Espirito Santo.

The action is fundamental for the revitalization of the Doce River. According to the Doce River Basin Committee (CBH-Doce), 80% of domestic sewage generated by the towns along the basin is not treated and dumped directly into the waterways, polluting rivers and causing a strong impact on the population’s health.

Of the 39 municipalities that will be served by the compensatory program of the Renova Foundation, 27 do not have any sewage treatment system at all and only 6 treat more than 50% of the effluents. The remaining 6 treat a small part of the sewage, less than 50% of the generated volume. The municipalities will receive funds ranging from R$ 2.6 million to R$ 71.3 million, depending on the number of inhabitants, the Municipal Participation Fund and the impacts suffered.

The payment through BDMG and Bandes aims to ensure the effective application of resources in projects and installation of sanitary sewage and final disposal of solid waste. The resources will be released in installments and will be provided according to the physical-financial time frames and prior approval of the measurements and accountability.

Also, within the scope of the program, the Renova Foundation will offer technical support to the local governments for qualification with the banks, bidding, elaboration/contracting of projects, hiring and monitoring of works and management of implemented actions. “The project has the potential to attract new resources,” believes Roberto Waack, president of the Renova Foundation.

A technical cooperation agreement will be signed with the Brazilian Association of Sanitary and Environmental Engineering (ABES-MG), a reference in the elaboration of technical standards and procedures related to basic sanitation. The Foundation will also partner with the National Health Foundation (Funasa), which has recognized expertise in basic sanitation and will support the work, especially of those municipalities with a population of less than 50 thousand.


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