States slash Pantanal investment plans

Brazil's Mato Grosso do Sul and Mato Grosso states has reformulated the Pantanal waterworks and infrastructure program, cutting its original US$400mn budget to 350mn reais (US$119mn), the Mato Grosso do Sul state government reported. "The values that were fixed were artificial, now we have realistic numbers, making it possible for the program to get off the paper," Mato Grosso do Sul governor Zeca said. Local legislators pledged to seek 15mn reais from the federal government's 2004 budget, which currently foresees 5mn reais for the program. The original program was split into two phases, the first of which costs some US$165mn and is supported by an US$82.5mn loan from the Inter-American Development Bank approved in 2001. This phase will run four years and along with waterworks, also includes water resources management; soil and pesticide management; and parkways and roads. The plan aims to promote sustainable development in the Alto Paraguay basin of Mato Grosso and Mato Grosso do Sul states. The environment ministry is the executing agency.