MG wants to seize fertilizer factory project suspended by Petrobras

The Government of Minas Gerais plans to assume, next to a private partner, an active of Petrobras in the State. This is the nitrogen fertilizer plant project that the State began to build last year in the city of Uberaba. In July of this year, however, in the midst of a comprehensive review of investments, the company announced the suspension of the works.
The Governor's team Fernando Pimentel (PT) has been discussing with banks a business model that allows for a possible acquisition of the project in conjunction with investors, according to the value a person who knows the Government negotiations. Petrobras reported that 30% of the enterprise's physical forward has already been completed. But did not respond to the report, through its press office, if you want to sell it.
Responsible for the works is the construction company Toyo-Setal, one of the implicated in investigations of corruption in contracts with Petrobras, revealed by car wash Operation. According to the Secretary of development of Mines, Altamir Rôso, the project has consumed of R $ 1.1 billion to $ 1.2 billion. He said he ordered equipment for the plant have already arrived.
The cornerstone of Nitrogenous fertilizer plant 5 was launched with pomp in may 2014 by President Rousseff, in a ceremony that also met the President of Petrobras, Maria das Graças Foster, Ministers and the then presidential hopeful of the Governor, Fernando Pimentel. At the time, Petrobras said the plant would begin operating in the first half of 2017 and that would have capacity to produce 519 thousand tonnes of ammonia (base of fertilizers) per year. This would be the fifth industry of this type in Brazil. The country is highly dependent on imported fertilizers for lack of local supply.
Altamir Rôso said that Petrobras does not have resources to continue construction and that the Government of Minas Gerais took the front to find an investor. "May be to buy the entire project or a part," he said. "The Government of Minas Gerais wants to make the investment and everything you do today passes through private initiative". The Secretary stated, however, that it is not aware that the Government has plans to take over the enterprise alongside a partner. But confirmed that there are talks by the team of Patel with banks about a business model capable of attracting private capital.
Patel presented a budget for investments beyond 2016. A project purchase plan of Petrobras could require State resources, as of Companhia Energética de Minas Gerais (Cemig) or Economic development company of Minas Gerais (Codemig). Cemig has a key role in the plant. That's because it would fit the Gasmig, its subsidiary, to build a pipeline to supply the unit. A project with the duct path came to be done, but was shelved.
"On the Petrobras business plan is not made explicit a deadline and a store of value for investment in ammonia plant," said last July the value the President of Cemig, Mauro Borges. "Cemig won't invest in the pipeline without having a firm contract that gas consumption. We are in talks with Petrobras. "