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Renova Foundation allocates over US$ 100 million for health and infrastructure works in the Doce River basin

The Renova Foundation, which is responsible for the actions of reparation and compensation for the damages caused by Samarco’s Fundão dam failure, has approved a package of over US$ 100 million to fund works in the health and infrastructure sectors in municipalities of the Doce River basin. These are government projects that were selected by the states for their collective and long-term impact, while being aligned with Renova’s 42 remediation and compensation programs. Through this additional action, the Foundation aims to support both physical and mental health of the population, diversify the local economy and facilitate access to important tourist hubs, such as the coast of Espírito Santo and the Doce River State Park in Minas Gerais.

The projects are part of the priority-integrated agenda presented by the governments of both states, prepared in accordance with the Doce River Mayors Forum and deliberated by the Interfederative Committee in February 2020. In line with a focus on the promotion of economic diversification in the affected municipalities, 153 km of roads in Minas Gerais and Espírito Santo will be restored to stimulate tourism, facilitate the movement of people and flow of goods.

In Minas Gerais, US$ 25 million will be transferred, of which US$ 2 million will be used to restore the road for access to the Doce River State Park (Bispo), an important tourist destination in the region. Another US$ 23 million will be allocated to the road that connects the Doce River Valley to the region of Zona da Mata.

In Espírito Santo, US$ 65 million will be invested to restore road stretches at the mouth of the Doce River, to Vila do Riacho, Regência and Povoação districts. Paving access to those tourist destinations is an old demand in the region.

In addition, works will be resumed at the new Regional Hospital of Governador Valadares to meet the demands of the 86 municipalities and about 1.5 million inhabitants in the eastern region of Minas Gerais. The state government will receive US$ 13 million to proceed with the second stage of the works and acquisition of equipment for the 256-bed hospital, which will also have nine operating rooms.

On another front, an additional US$ 2 million will be allocated to the implementation of an Industrial District in the municipality of Rio Doce, with an estimated area of 5,500 square meters. The objective is to offset the impacts of the interruption of Risoleta Neves hydroelectric plant operation with the attraction of new companies. The action will also benefit the neighboring towns of Ponte Nova, Dom Silverio, Barra Longa, Santa Cruz do Escalvado and Sem Peixe.

About the Renova Foundation

The Renova Foundation was established in March 2016 through a Term of Transaction and Adjustment of Conduct (TTAC), signed between Samarco, its shareholders Vale and BHP, the federal and state governments of Minas Gerais and Espírito Santo, in addition to a series of institutes (such as Ibama, Chico Mendes Institute, National Water Agency, State Forestry Institute, Funai, Environment Secretariats, among others) to manage and execute programs and actions for repairing and compensating for the damages caused by the Fundão dam failure, in November 2015.