The Federal Court of Accounts (TCU) of Brazil has decided to halt federal funding for the Santos-Guarujá tunnel project, managed by the Port Authority of Santos (APS), due to governance issues within the public-private partnership (PPP). This decision, made on Wednesday, aims to ensure better management of the R$ 2.6 billion allocated for the project. TCU's Minister Bruno Dantas emphasized the need for clear guidelines to manage these federal funds before any disbursement can occur.

During the hearing, Minister Dantas requested an official document, signed by both the São Paulo state government and the APS, outlining how the federal resources will be managed. A 30-day deadline was set for this document to be presented. The minister criticized the current governance structure, labeling it as insufficient for a project of this magnitude, which is unique in Brazil due to its federative public-private partnership framework.

The stalling of these federal resources will likely delay the progress on the tunnel project, which is considered crucial for improving regional transportation between Santos and Guarujá. Stakeholders are now under pressure to enhance governance and transparency in the project's management to avoid further delays and ensure that the necessary funding can be released.