Brazil: contractors fear more layoffs as DNIT fails to pay up

The head of Brazil’s association of road constructors has warned of more layoffs unless the National Department of Infrastructure and Transport (DNIT) starts paying its contractors. Jose Alberto Pereira Ribeiro, president of ANEOR – National Association of Road Works - said companies already have been forced to lay off around 1,700 workers in light of non-payment by the government. Another 950 employees are on forced holidays. Ribeiro claimed DNIT failed to meet its financial obligations for September
November 25, 2014 Read time: 2 mins
The head of Brazil’s association of road constructors has warned of more layoffs unless the National Department of Infrastructure and Transport (DNIT) starts paying its contractors.

Jose Alberto Pereira Ribeiro, president of ANEOR – National Association of Road Works - said companies already have been forced to lay off around 1,700 workers in light of non-payment by the government. Another 950 employees are on forced holidays.

Ribeiro claimed DNIT failed to meet its financial obligations for September, amounting to US$275 million, and another $275 million for October.

By the end of November, DNIT is expected to owe $738 million to companies contracted to carry out road works.

A report on Brazil’s construction sector by the %$Linker: 2 External <?xml version="1.0" encoding="utf-16"?><dictionary /> 0 0 0 oLinkExternal Financial Times newspaper Visit FT page false http://www.ft.com/home/uk false false%> in August 2012 noted that, according to research from 3347 Goldman Sachs, only 6% of Brazil’s roads are paved, compared with 54% in China and 80% in Russia. Also, a 3019 World Economic Forum survey of infrastructure quality gave Brazil 3.6 out of 7, compared with China’s 5.5. Mexico and Chile were ahead of Brazil on almost all measures, from roads, railways and ports to air transport, with the exception of electricity supply.
 
%$Linker: 2 Internal <?xml version="1.0" encoding="utf-16"?><dictionary /> 2 18061 0 oLinkExternal World Highways reported in July Visit brazil opening tender processes for highways tunnels and road repairs page false /categories/road-highway-structures/news/brazil-opening-tender-processes-for-highways-tunnels-and-road-repairs/ false false%> that DNIT had plans for a series of tenders for major highway, tunnel and road repair projects, all of which form part of phase 2 of the country's growth acceleration plan, PAC. The first of the key projects opening for tender will be the new 1.4km Morro dos Cavalos tunnel in the city of Palhoca in the southern state of Santa Catarina. The tunnel will form part of federal highway BR-101. Work is expected to cost $295 million and the tunnel should be open by 2017.
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