State government estimates that 600,000 MSEs were affected by rains and flooding

05/09/2024

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A boat navigates through a flooded street after heavy rain in Canoas, Rio Grande do Sul — Foto: Carlos Macedo/AP

The death toll due to the rains in Rio Grande do Sul has risen to 107, with 136 people missing and one death under investigation. According to the Civil Defense of Rio Grande do Sul, 67,542 people lost their homes and have been relocated to shelters provided by the public authorities, and 163,786 have been displaced. Of the total 497 municipalities in the state, 425 were affected by the heavy rains in the region. The number represents more than 85.5% of all state’s municipalities.

The financial impacts of the storms that started last week are also starting to be assessed. The damage to municipalities in Rio Grande do Sul affected by the floods now reaches R$6.3 billion, according to the most recent survey by the National Confederation of Municipalities (CNM). Of this total, R$1.9 billion are in the public sector and R$1 billion in the private sector. Most of the damage is in the housing sector, with losses of R$3.4 billion, arising from 61,400 homes damaged or destroyed.

The CNM points out that the data gathered until 2 pm on Wednesday (8) are partial and are being updated as municipal administrations enter information into the Integrated Disaster Information System, by the Ministry of Integration and Regional Development.

In the public sector, the estimate points to R$1.4 billion in losses in infrastructure works alone (bridges, roads, pavement work, and urban drainage systems) and R$ 351 million in losses related to material damage (public facilities such as schools, hospitals, and city halls).

In the private sector, the most affected sector is agriculture, with an estimated loss of R$595 million. Livestock farming faces losses of R$148 million. In industry, the loss is estimated at R$183 million. Losses with other services amount to R$58 million and local businesses, R$39 million.

Rio Grande do Sul’s small-business support service SEBRAE estimates that 600,000 micro and small enterprises (MSEs) were affected by the rains and flooding. The number represents 40% of the total of 1.5 million MSEs in the state.

“We attended a meeting with the state’s Department of Economic Development to prepare a methodology for diagnosing companies. The survey should be carried out from Thursday (9) with publicity so that micro, small, medium, and large entrepreneurs can participate,” said Ariel Fernando Berti, SEBRAE’s director in Rio Grande do Sul.

The new survey, according to Mr. Berti, should help financial institutions and banks evaluate loan facilities for the affected sectors, as it will disclose numbers on the real impact of damages and losses.

According to him, the priority right now is to save lives, resume essential service systems, and ensure safety for everyone in the most affected areas. “Many people have been displaced in completely devastated communities that are stranded from other areas, and are facing collapse of bridges or road issues. The priority is to save lives,” he emphasized.

The return of rain and strong winds to the Porto Alegre area on Wednesday (8) forced the city hall to pause the rescue of victims of the historic floods in Rio Grande do Sul. The Civil Defense is preparing for a new cold front expected to arrive in the state on Friday (10), causing storms almost as strong as those seen last week. They are expected to occur in the same areas affected last week.

According to the current estimate, 330 millimeters of rain is expected from Friday (10) to next Monday (13) in Porto Alegre. The forecast indicates that, during that period, the most intense rain should occur in the area between the center-north and east of Rio Grande do Sul, including the north coast of the state and the south of Santa Catarina. In these areas, the volume of rain should vary between 200 mm and 300 mm.

For Thursday (9), the forecast by the National Institute of Meteorology (INMET) is for cold, dry weather in the south of Rio Grande do Sul, with minimum temperatures varying from 4°C to 8°C.

(With Folhapress)

*Por Paula Martini, Luiz Fernando Figliagi — Rio de Janeiro, São Paulo

Source: Valor International

https://valorinternational.globo.com/