Fundação Renova

Renova Foundation reaches agreement to speed up the indemnity process related to water in Governador Valadares

Published in: 03/28/2017

Indemnities

The expectation is to indemnify all those affected in the town by mid-2017

The Renova Foundation concluded today, March 28, the Collaboration Agreement with the Court of the State of Minas Gerais (TJMG) to speed up the claims related to the interruption of water supply in Governador Valadares (MG), due to the collapse of the Fundão dam.

With the measure, an Advanced Self-Mediation Office (PAA) will be installed where those involved may seek conciliation to their disputes (disputes between parties of a lawsuit) in the district of Governador Valadares. The signing of the Collaboration Agreement reinforces the objective of the Renova Foundation to restore the communities affected by the dam collapse. The expectation of Renova is to finalize the indemnity process for those impacted by water shortages in Governador Valadares by mid-2017.

PROCESS INITIATION

The indemnity process was initiated by the Renova Foundation in Governador Valadares in October 2016.  The Mediated Indemnity Program (PIM) seeks to compensate those affected in a timely manner, alternative to a legal action, with a mutual agreement and without the procedures and costs of a lawsuit. Participating in the program is voluntary and free of charge. To date, in Governador Valadares, 60,000 people have been assisted and, of this total, 20,000 people have received their indemnity.

For the calculation of the indemnity related to water, considering the period of days that the town was left without water supply (in case of Governador Valadares, seven days), the average amount of the population’s water bills was evaluated. Based on this evaluation, the Foundation proposed to tailor the indemnity to the amount of R$ 1,000.00, considering the addition of 10% for vulnerable individuals. A family that, for example, includes five people, being a couple and three children, receives about 5,300 BRL. Each family member, including minors, are indemnified.

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