Last year alone, approximately R$ 5.64 billion was paid, almost triple the amount initially estimated in the Budget for the year
The Renova Foundation ended 2021 with more than BRL 8.71 billion paid in compensation and Emergency Financial Aid (AFE) for the damage caused by the Fundao dam collapse (MG) to about 363,500 people.
Last year alone, approximately R$ 5.64 billion was disbursed in compensation and financial aid. This value is 182% higher than initially forecast for 2021: BRL 2 billion.
In this context, the Renova Foundation is moving towards definitive financial reparation. By the end of 2021, the Renova Foundation had disbursed BRL 19.6 billion in compensation and financial reparation actions.
“This growth is due to the Simplified Indemnity System, implemented by the Renova Foundation following a court decision, when compensation gained new momentum, unlocking informal payments”, says Mariana Azevedo, manager of Integrated Management of Compensation Solutions at the Renova Foundation.
The Simplified Indemnity System allows the indemnification of often informal categories such as artisans, cart drivers, washerwomen, subsistence and informal fishermen, sand harvesters and others. The system also compensates formal categories such as professional fishermen, boat owners and companies such as hotels, inns and restaurants. Residents of 45 impacted municipalities have access to the System. In 2021, 51.8 thousand people received their compensation for this flow, corresponding to the total amount paid of R$ 5.1 billion.
For those who have proven damage, financial compensation is also handled by the Renova Foundation through the PIM/AFE System. It includes those who meet the criteria of the Mediated Indemnity Program (PIM) and the Emergency Aid Program (AFE), as provided for in the Transaction and Conduct Adjustment Agreement (TTAC).
Amount paid and people indemnified by the Simplified Indemnity System by location as of December 2021 (approximate numbers):
|District||Number of beneficiaries||Amount Paid (BRL)|
|1||Aimores:||6.1 thousand||576 million|
|2.||Aracruz||3.7 thousand||393 million|
|3.||Baixo Guandu||7.6 thousand||689 million|
|4.||Belo Oriente||2.9 thousand||241 million|
|5.||Bom Jesus do Galho||1 thousand||97.6 million|
|7.||Colatina||1.7 thousand||175 million|
|8.||Conceicao da Barra||2.9 thousand||355 million|
|9.||Governador Valadares||570||45 million|
|11||Linhares||6.6 thousand||661 million|
|12.||Naque||2.2 thousand||176 million|
|13||Periquito||1.7 thousand||167 million|
|14||Rio Doce||940||105 million|
|15.||Santana do Paraiso||530||46 million|
|16.||Sao Mateus||4 thousand||479 million|
|21.||Fernandes Tourinho||120||11 million|
|23.||Santa Cruz do Escalvado||1.6 thousand||182 million|
|24.||Sao Jose do Goiabal||1 thousand||100 million|
|26.||Pingo d´Água||100||10 million|
|27.||Tumiritinga||1.5 thousand||147 million|
|28.||Ponte Nova||400||57 million|
|30.||Rio Casca||85||8.5 million|
About the Renova Foundation
The Renova Foundation is a private non-profit organization, created with the sole purpose of managing and executing the actions and programs for reparation and compensation of the damage caused by the Fundao Dam collapse.
The Foundation was established in March 2016 by means of the Transaction and Conduct Adjustment Term (TTAC), signed between Samarco, its shareholders Vale and BHP, the federal government and the state governments of Minas Gerais and Espirito Santo, as well as several authorities, foundations and institutes (like Ibama, Chico Mendes Institute, National Water Agency, State Forestry Institute, Funai, Governmental Departments of Environment, among others).