In Rio de Janeiro State, Petroleum Money Boosts Niterói's Fast Growth

04/24/2017 - 11h44

Located across from the biggest petroleum field in Brazil, the city of Niterói, in grater Rio de Janeiro, is surviving the country's ongoing economic crisis. With high revenues, the City Hall is keeping a fast pace of inaugurations and has taken on responsibilities that belong to the state government, such as security.

Adversaries say that Mayor Rodrigo Neves, of the Partido Verde, is digging for publicity to run for governor in 2018.

Niterói receives 43% of the royalties of petroleum exploitation paid by the Lula oil field, the biggest in the country, which produces 690,000 barrels per day. It corresponds to 25% of the entire Brazilian production.

Unlike most of the petroleum producing cities in Brazil, Niterói has seen revenues increase by 230% since 2011.

Since he was reelected, Mayor Neves has carried out a series of inaugurations in the city. On May 6, for example, he intends to inaugurate the construction of a road that includes a special lane for buses and a tunnel that crosses part of the city.

The city does not pay for all the construction alone. The city's net debt nearly doubled last year, hiking from R$ 347.9 million (US$ 111 million) to R$ 664.1 million (US$ 212 million) .

In April, Niterói managed to obtain a loan of US$ 100 million from the Andean Development Cooperation (CAF).

Another loan, of some R$ 300 million (US$ 96 million), was obtained in 2013 to build a highway. The city's debts correspond to 35.5% of its net current revenues and Mayor Neves says he is looking for public-private partnerships.

Translated by THOMAS MUELLO

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