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Failure of the Fundão Dam
Case study: Neo Axia’s role in the Fundão Dam Failure
Context:
In November 2015, Brazil was deeply impacted by one of the biggest environmental disasters in its history, the collapse of the Fundão Dam, in Mariana, Minas Gerais. This event released a vast amount of waste, devastating communities, ecosystems and economic activities along the Doce River and its tributaries. The Renova Foundation was then established to manage the repair and compensation for the resulting damages.
Challenge:
In addition to the immediate damage, the disaster generated long-term socioeconomic implications for thousands of families. Professional categories such as fishermen, miners, artisans and traders were affected, making the challenge of understanding, monetizing and compensating for these damages a monumental task.
Neo Axia’s Operations:
- Case Sizing: Firstly, Neo Axia identified and categorized the affected families, highlighting the characteristics and needs of each professional group.
- Definition of Compensation Policies: In partnership with the Renova Foundation, Neo Axia developed clear compensation policies. These policies defined eligibility criteria and methods for valuing damages.
- Microeconomic Studies: To understand the resumption of economic activities in the affected categories, Neo Axia carried out detailed microeconomic studies. These studies have provided insights into obstacles and opportunities for economic restoration, helping to formulate support and recovery strategies.
- Damage Monetization: Based on the studies and evaluations carried out, the team determined compensatory values for the economic losses in each category.
- Workflows: A robust and transparent compensation process was developed, which included feedback and review mechanisms to ensure its effectiveness.
- Engagement with Stakeholders: Recognizing the need for ongoing dialogue, Neo Axia established communication channels with affected communities, ensuring their voices were integrated into proposed solutions.
Results and Impact:
Thanks to Neo Axia's expertise and involvement, the Renova Foundation was able to not only understand and quantify the damage, but also visualize clear paths to economic recovery for affected communities. Neo Axia's role was crucial in ensuring a holistic approach that not only compensated victims but also paved the way for lasting and sustainable economic restoration.
