English 
Francês 
Alemão 
Italiano 
Japonês 
Norueguês 
Portuguese 
Spanish 
3 min of reading 
The Expectation That Jair Bolsonaro Will Strive to Finalize the Privatization of Eletrobras Caused Euphoria in the Market. The State-Owned Company Shares Helped Boost Ibovespa, the Main Index of the São Paulo Stock Exchange (B3), with the Surge of 8.6% of the Stocks in Trading.
In the report that the Planning Ministry of Michel Temer’s government delivered to the transition team. One of the major challenges that the next government will face, the privatization of Eletrobras is considered a strategic decision, with short- and medium-term effects. The document highlights solely the sale of the electric company as a priority, even though Michel Temer’s Partnerships and Investment Program Secretariat has other privatizations planned. LEARN ABOUT THE NEW GOVERNMENT’S PLANS FOR STATE-OWNED ENTERPRISES IN THE COUNTRY.
The president of Eletrobras, Wilson Ferreira Júnior, stated that if the privatization does not occur by December 31, Amazonas Energia will be liquidated, meaning Eletrobras will close its subsidiary, and the Union will have to take over service provision. Eletrobras has a loss of R$ 1.6 billion in the third quarter. The balance is much worse than the profit of R$ 550 million recorded in 2017; however, the year-to-date result for the state-owned company is positive at R$ 1.275 billion.
-
Government unlocks R$ 554 million for a highway that has been requested for decades and accelerates the duplication of BR.
-
Without bricks, without cement, and without endless construction: the cardboard house that is assembled in modules and can be moved.
-
Billions of barrels on the equatorial margin could lead Amapá to double its oil production in Brazil — the state aims to enter the route of companies in the Campos Basin, attract investments, and boost jobs and businesses in the oil and gas sector.
-
Without bricks, without cement, and without endless construction: the cardboard house that is assembled in modules and can be moved.
The economic-financial scenario of Eletrobras restricts the company’s ability to expand the supply of electricity generation and transmission, which becomes burdensome for society due to reduced competition in the market resulting from the limitation of a major competitor. The privatization of distributors would have a positive impact of R$ 8.6 billion. This value refers to the reversal of uncovered liabilities of these companies, the already sold concessions are expected to revert positively R$ 3 billion.
Court Suspends the Privatization of Eletrobras
On Wednesday, the 49th Labor Court of Rio de Janeiro decided to annul the 170th extraordinary general assembly of Eletrobras, held in February this year, which resolved to sell the state-owned energy distributors. According to the decision by Judge Raquel de Oliveira Maciel, the parties must refrain from proceeding with the privatization or liquidation process of the distributors and present a study on the impact of privatization on employment contracts and the rights acquired by their employees, under penalty of a fine of R$ 1 million.
Eletrobras stated that it had not been notified of the mentioned decision and would respond when it received the notification.
The decision comes after Eletrobras sold four of its distributors this year. Four of Eletrobras’s six distributors have already been sold. In July, the Companhia Energética do Piauí (Cepisa) was sold, which is expected to sign the concession contract this Thursday (18), and in August, Companhia de Eletricidade do Acre (Eletroacre), Centrais Elétricas de Rondônia (Ceron), and Boa Vista Energia in Roraima were sold. The units in Amazonas, whose auction was scheduled for the 27th of this month but was postponed to December 10, with the document submission on the 6th, and Alagoas remain to be privatized.
The Companhia Energética de Alagoas (Ceal) has its sale suspended by decision of Minister Ricardo Lewandowski of the Supreme Federal Court, and Amazonas Energia has its auction scheduled.
Amazonas Distribuidora is one of the six distributors the government wants to privatize still in 2018. In the case of Amazonas Energia, the postponement of the auction occurred due to the need to complete the negotiations of a debt of Eletrobras with Petrobras, estimated at around R$ 15 billion, related to the purchase of fuels for thermal plants in the State. The terms of the renegotiation changed with the Senate’s rejection of the bill addressing Amazonas Energia and resolving the company’s pending issues. Since then, the government has been trying to find a solution for the company. THE RESUMPTION OF WORK AT ANGRA 3 NUCLEAR POWER PLANT WILL REFLECT ON CONSUMER BUDGETS
Seja o primeiro a reagir!