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Brazil’s Audit Court Halts R$2.6 Billion Transfer for Santos–Guarujá Tunnel

APS must present with São Paulo state a formal governance pact within 30 days before any federal funds are released.

Overview

  • The TCU unanimously blocked the immediate federal disbursement and barred APS from transferring money to the PPP until the court’s conditions are met.
  • Relator Bruno Dantas cited a legal vacuum over the Union’s role and noted institutional resistance by São Paulo state and Artesp to giving APS a defined position.
  • APS says it holds R$2.6 billion in a Banco do Brasil account and presented proof to the ports minister, asserting the decision should not delay the construction timetable.
  • The court extended earlier requirements, including hiring an accredited independent inspection body and tying releases to defined project milestones for transparency.
  • The tunnel is a state‑led PPP won by Mota‑Engil, with total investment near R$6.8 billion and federal participation expected to finance roughly half of the public contribution.