Brazilian government announces new privatization plans

The Brazilian government has just announced the agenda for a series of new plans for auctioning public assets, aiming to raise government income in order to meet fiscal objectives.

This is the follow up stage of a series of privatizations and concessions announced in September 2016, which included in its first phase 34 projects. In this second phase they are releasing 57 new assets. The plan is parto f the Investment Partnership Program, which discusses concessions and privatizations.

Earlier this week the Ministry of Mines and Energy had already announced a proposal to the privatization of Eletrobras, through selling part of the shares owned by the Federal Government, though maintaining its veto power.

The government announced that wishes to auction part of its BR-364, a federal highway running from the state of Rondônia and Mato Grosso and rebid part of BR-153 between Goiás and Tocantins. BR-153 was auctioned back in 2014 during Roussef’s administration, but the concessionary Galvão did not meet the contracted investments and had its contract cancelled. These auctions are currently scheduled for the last quarter of 2018.

The Ministry of Transport is also proposing the concession of 15 port terminals, which are áreas dedicated to cargo handling in ports. They are located in Belém (LPG and liquid bulk cargo), Vila do Conde (liquid bulk cargo), Paranaguá (grains) and Vitória (liquid bulk cargo). The government also included the early extension of fertilizers terminal of Itaqui Port and the authorization for capacity increase in the Terminal Agrovia Nordeste, located at the Port of Suape. All biddings scheduled for 2018.

The Private Investment Partnership also foresee the concession of 12 airports, in two regional blocks: Nordeste (cities of Maceió, Aracaju, João Pessoa, Campina Grande, Juazeiro do Norte and Recife) and Midwest (cities of Cuiabá, Sinop, Alta Floresta, Barra do Garças and Rondópolis). The plan also confirms the intention of selling shares from Infraero at Guarulhos, Confins, Brasília and Galeão airports.

The Ministry of Defense also included the intention of a Public-Private Partnership in the modality of a 25-year administrative concession for the services of telecommunications signal transportation for the Department of Air Space Control (Decea) and military organizations in the country.

The Ministry of Mines and Energy will also propose 11 concession projects for the instalation of electric transmission (transmission lines and substations) located in the states of Bahia, Ceará, Pará, Paraná, Paraíba, Pernambuco, Piauí, Rio Grande do Norte, Minas Gerais e Tocantins.

Source: This article was originally posted on G1 News in the Portuguese language and translate by Juliana Michelon Alvarenga. BSc. International Relations, MBA Business Intelligence. []

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