By Lisandra ParaguassuBRASILIA (Reuters) - Brazil plans to expand its railway network with a 40 billion reais ($8 billion) fund that will be financed by removing discounts given to rail companies by previous government contracts, Transport Minister Renan Filho told Reuters.
The Federal Audit Court is now reviewing those extensions after the government of President Lula da Silva disputed the discounts.
"We think that some procedures adopted in the contracts are unacceptable," Filho said in an interview on Friday.
According to the government, the companies owe an additional 40 billion reais ($8.1 billion) in unpaid concession payments.
The government's goal is to have 40% of Brazil's freight, which is mostly iron ore, transported by rail, up from 17% today.
Persons:
Renan Filho, Jair Bolsonaro, Lula da Silva, Filho, Rumo, São Paulo, Vale, Lisandra Paraguasu, Anthony Boadle, Emelia Sithole, Aurora Ellis
Organizations:
Reuters, Transport, Federal Audit Court, Vale, Rumo, TCU
Locations:
Paraguassu BRASILIA, Brazil, Carajas, Vitoria, Espirito Santo, São