Social Agreement with Quilombo Communities for the Continuation of the West-East Integration Railway – FIOL II

Overview of the Project and Why It Should Win

In December 2024, Brazil set a precedent by implementing a judicially homologated agreement between the federal government, public entities, and traditional Afro-Brazilian communities (quilombo communities). This legally binding, multi-party pact enabled the continuation of one of the country’s most strategic infrastructure projects: the West-East Integration Railway (FIOL II). It was achieved not through litigation or displacement, but through a structured, participatory social agreement that allocated BRL 105 million (USD 19 million) toward land regularization, compensation, and capacity-building for the communities historically residing in the railway’s path. The agreement was forged in a complex context of overlapping administrative procedures, judicial disputes, and socio-environmental conflict. Its success required close coordination between Infra S.A., INCRA (the Land Reform Agency), the Federal Prosecution Office (MPF), and five quilombola associations. The result is a blueprint for inclusive development and legal certainty in public infrastructure. 1. Innovation in Procurement, Structure, Finance and Delivery This is the first time a federally-granted railway project has continued through a court-approved social agreement, setting a new standard for stakeholder engagement and legal integration in infrastructure. The model includes: Environmental licensing compliance: The agreement embeds a specific Environmental Quilombo Component (ECQ) and a Basic Environmental Plan (PBAQ), which are enforceable obligations. Judicial enforcement: The agreement is a binding court settlement, with clearly defined consequences in case of noncompliance. Decentralized finance: Funds are managed via judicial deposits and TEDs (Decentralized Execution Terms) directly linked to INCRA and the communities. Community-driven implementation: Communities select and contract their own technical and legal advisors. Monitoring and governance: An Executive Committee, including all parties, meets quarterly to oversee implementation. The MPF plays a crucial role in legal oversight. Should Infra S.A. or INCRA fail to fulfill obligations, the MPF may request suspension of licenses or enforcement actions — giving the communities real guarantees. 2. Raising Quality of Life for Impacted Communities The agreement guarantees land titling to over 325 families across five quilombola territories: Lagoa do Peixe Araçá-Volta Nova Batalhinha Rio das Rãs Bebedouro Together, these lands cover more than 60,000 hectares. The titling unlocks access to federal programs in housing, agriculture, credit, and sanitation. It ends decades of territorial insecurity that had prevented long-term investment and community development. In addition to titling, the agreement funds advisory services and ensures participation in decisions affecting timing, land prioritization, and infrastructure interfaces — giving each community voice, technical agency, and institutional visibility. 3. Mitigation of Construction Impacts The agreement is a precondition for construction to resume. No license may be issued before: Approval of the Environmental Quilombo Plan (PBAQ) Community consent via General Assemblies Technical clearance by INCRA Specific mitigation measures include: Advance notice before entering community territory Right to delay or deny works if obligations are not met Restrictions on circulation in cultural or sensitive zones Ecological buffer areas and conservation corridors The PBAQ also incorporates local knowledge into environmental and land-use planning. These measures reduce the footprint of the project while improving social acceptance and avoiding litigation. 4. Design Quality, Environmental and Social Sustainability Unlike conventional infrastructure that prioritizes engineering efficiency, the agreement is guided by principles of sustainability, equity, and self-determination. It aligns with: ILO Convention 169 on free, prior and informed consent Brazil’s National Policy for Traditional Peoples (Decree 6.040/2007) Environmental licensing obligations under federal law All project documentation — including the PBAQ — reflects environmental, cultural, and territorial considerations raised by the communities. The result is a railway project that integrates social repair, environmental protection, and legal predictability. 5. Transformative Effect on Local Communities Before the agreement, communities lived in legal limbo: no titles, no access to credit, and constant threat of exclusion. After the agreement, they now benefit from: Full legal recognition of ancestral territories Inclusion in public infrastructure planning Access to legal, financial, and technical tools Revival of trust in public institutions Community representatives are now members of the Executive Committee, with regular seats at the table where implementation timelines, funding, and legal steps are reviewed. This transformation is structural and symbolic — placing historically excluded groups in direct dialogue with the State. 6. Official Declarations and Institutional Recognition During the court process, the quilombola associations formally confirmed — via free, prior, and informed consent through General Assemblies — their support for the agreement. This decision was made collectively, in accordance with ILO Convention 169, and documented in Clause 4 of the judicial act. Crucially, the agreement also resolved longstanding territorial disputes between communities and landowners. Expropriation of overlapping properties was formalized, ensuring that the railway’s right of way and community land rights were respected simultaneously. For many families, this ended decades of uncertainty and tension. The Federal Judge who homologated the agreement described it as a model for reconciling constitutional rights with infrastructure development, and emphasized its legitimacy, enforceability, and public interest. Conclusion This project is a living testament to the potential of public-private-social partnerships. It shows that infrastructure can be an engine for inclusion, not exclusion. It replaces legal paralysis with collaborative progress, balancing speed with dignity and development with justice. The Social Agreement for FIOL II is more than a workaround — it is a pioneering framework for how to deliver infrastructure in a democratic society. Its structure is replicable across Latin America and globally, especially where vulnerable or traditional communities are affected by large-scale projects. For its innovation, impact, and legitimacy, this project is a compelling candidate for the P3 Awards Social Impact recognition.