The Transaction and Conduct Adjustment Term (TTAC) established in clause 142 that “the Foundation will discuss with the impacted Municipalities as to the compensation for the extraordinary public expenses arising” from the Fundao dam collapse.
Extraordinary expenses were incurred as a result of actions, services performed by third parties and/or products purchased during the emergency period right after the collapse and up to the signing of the TTAC (November 5, 2015, to March 31, 2016).
The Renova Foundation initiated conversations with municipalities for the compensation of extraordinary expenses and during the negotiations it was found that most municipalities were not able to prove the amount spent on emergency actions.
Within the scope of the Technical Board of Economy and Innovation (CTEI), a methodology was elaborated with the municipalities that enabled the definition of values to be reimbursed. This culminated in Resolution 208 of the Interfederative Committee (CIF), which approved the estimated amount of R$ 53 million for compensation of extraordinary expenses and allocations to 39 municipalities of Minas Gerais and Espirito Santo.
On Friday (11/23), the Renova Foundation presented a payment proposal, with a term of total discharge, for extraordinary public allocations and expenses to the municipal governments of Sao Jose do Goiabal, Rio Casca, Rio Doce e Mariana, which formally expressed their views on the previous document. The term of discharge provides for the termination of legal actions that include the subject in question (extraordinary expenses), considering that the repair work is based on an out-of-court settlement.