Camargo Corrêa and Mendes Júnior shrank after Lava Jato; part of the companies disappeared or changed their activities
The construction of the 1st stage of Brasília, completed with the inauguration of the city on April 21, 1960, was carried out over a period of 4 years, between 1956 and 1960. The works involved construction companies from different regions of the country, mainly Rio, Minas Gerais and São Paulo.
Among these companies, Camargo Corrêa ea Mendes Junior They expanded their activities over the following decades, with a strong presence in public projects, especially during the military regime (1964-1985). Over time, both also expanded operations abroad. In more recent years, however, they have lost space in the market due to the entry of new competitors and the reconfiguration of the sector.
The investigations conducted by Operation Lava Jatostarted in 2014, directly affected large construction companies involved in public contracts. The investigations resulted in sanctions, leniency agreements and retraction of the activities of these companies. Mendes Júnior, for example, had the contract for the transposition of the São Francisco River, in addition to restrictions on contracting with public authorities. Camargo Corrêa has already signed.
Since then, the agreements have been reviewed and renegotiated, with adjustments to values and conditions. At the same time, the sector underwent structural changes, with greater participation of medium-sized companies, foreign groups and concession operators, in addition to PPPs.
CREATION OF STATE
The construction project for the new capital was initiated by the president’s government Juscelino Kubitschek (1902-1976), shortly after his inauguration, in January 1956. To make the works viable, the state-owned company was created, responsible for coordinating and executing part of the work. The company continues to operate and is currently part of the Federal District government structure.
During construction, Novacap both carried out works directly and hired contractors. At the time, there was no current bidding framework, which opened up space for questions about favoritism in contracts.
According to an analysis published by Ana Paula Gross Alves, in Management, Economics and Business Magazinefrom the Brazilian Institute of Education, Development and Research, the existing rules were limited and allowed practices such as favoritism and nepotism.
On the other hand, the flexibility in the processes contributed to the speed of the work. Kubitschek set the inauguration deadline in April 1960 because he considered the risk of discontinuity of the project in subsequent governments. His term ended in January 1961, and there was no possibility of re-election.
Currently, Novacap operates under stricter regulations, requiring formal tenders and supervision by control bodies.
AREA EXPLORED IN THE 19TH CENTURY
The idea of moving the capital to the interior of the country predates the Kubitschek government. The 1891 Constitution already provided for the move to the central region of the national territory.
The following year, in 1892, the Cruls Mission carried out technical studies in the area where the Federal District would be located.
Decades later, in March 1957, a competition was held to define the urban plan for the new capital. The winning project was Lucio Costa (1902-1998). The architect Oscar Niemeyer (1907-2012), member of the jury, was responsible for the projects of the main buildings, at the invitation of Kubitschek.
On the opening date, on April 21, 1960, structures such as the Palácio da Alvorada, the Brasília Palace Hotel and the Três Poderes buildings were delivered, as well as residential complexes in Asa Sul. Part of the buildings, however, was completed later.
CONSTRUCTION COMPANIES
Here are the construction companies that participated in the construction of Brasília:
- Camargo Corrêa – founded in 1939, it consolidated itself with public works throughout the 20th century. After the Lava Jato developments, it underwent restructuring and reorganized its operations under the holding company Mover. Today it maintains participation in infrastructure concessions, with more concentrated operations;
- Coenge – the brand is currently used by small companies in Minas Gerais and Espírito Santo, with no link to the construction company that worked on the construction of Brasília;
- Ecisa – created in 1949, participated in initial works in the capital and later worked on projects such as Conjunto Nacional. Over time, he directed his resources towards participation in projects, such as shopping centers;
- EBE (Brazilian Engineering Company) – the name remains in use by a smaller company, unrelated to the original;
- Mendes Júnior – founded in 1953, continues to operate in the areas of infrastructure and oil and gas, with a reduced presence compared to the period prior to the investigations;
- Pederneiras – the company closed its activities in the 1990s;
- Rabello – responsible for residential works in Brasília and infrastructure projects in other regions of the country, stopped operating in the 1990s.
