The Council of Directors of the Merchant Marine Fund (CDFMM) gave the green light last Thursday (14) for the allocation of R$ 2.89 billion to 19 projects. These projects encompass the construction, modernization, conversion, maintenance, and repair of vessels, as well as the acquisition and installation of equipment for river and maritime navigation.
The Minister of Ports and Airports, Silvio Costa Filho, highlighted that this was the largest approval of priorities for river navigation in recent years. He emphasized that approximately R$ 1.5 billion was allocated solely for the construction of pushboats, barges, and convoys, thereby encouraging the enhancement and promotion of navigation on navigable rivers. The Minister expressed the intention to continue advancing in this direction after the Council’s deliberations.
The projects that obtained priority will be formalized through a CDFMM Resolution, to be published in the Official Gazette of the Union. Companies can then seek financing from affiliated financial agents, including BNDES, Banco do Brasil, Caixa Econômica Federal, and BASA.
Ministry of Infrastructure Ordinance No. 1,460/2022 establishes the procedures and rules for granting priority by the CDFMM and sets deadlines for financing contracts of 450 days for new projects and 180 days for the extension of projects previously prioritized by the CDFMM.
The Fund can cover up to 90% of the cost of requested projects, and financing rates with FMM resources will vary based on the percentage of domestic content and the type of vessel, as stipulated in CMN Resolution No. 5,031/2022.
The date of the next CDFMM meeting is scheduled for December 7, 2023. However, it is important to note that the deadline for project submissions ends on October 9. Any proposal must be submitted to DNHI through the government’s electronic system, known as SUPER.