In parallel, the Bolsonaro government also edited a provisional measure (MP) that establishes the end of the Casa da Moeda’s monopoly in the manufacture of paper money.

Today, November 5, President Jair Bolsonaro signed the bill that defines the privatization model of Eletrobras, currently responsible for about a third of the generation capacity and half of the energy transmission in Brazil.  The privatization of the company generates an expectation of R$ 16,2 billion for the Government.

According to the article, which still needs to be deliberated by the National Congress, the privatization of Eletrobras will occur through a capitalization process that will dilute the Union's stake in the company

According to the executive secretary of the Ministry of Mines and Energy, Marisete Pereira, the project also assumes that the process may involve an additional, secondary supply.

The company's capitalization is scheduled for the second half of 2020 and should generate resources for Eletrobras to pay the Treasury 16,2 billion reais as grant bonuses, in exchange for the renewal under more advantageous conditions of contracts for a series of old hydroelectric plants.

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Currently, the Union owns 40,99% of the share capital of Eletrobras, but with 51% of the common shares, with voting rights.

But the privatization bill will provide that none of the state's shareholders will be able to have more than 10% of the votes, not even the Union, said the Minister of Mines and Energy, Bento Albuquerque.

The National Bank for Economic and Social Development (BNDES) has 5,51% of the capital, while the state bank's equity arm, BNDESPar, has 10,48%.

In parallel, the Bolsonaro government also edited a provisional measure (MP) that establishes the end of the Casa da Moeda’s monopoly in the manufacture of paper money.

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Eletrobras had its creation proposed in 1954 by then-president Getúlio Vargas and effectively left the drawing board in 1962, under the presidency of João Goulart.

The state-owned company's assets became the subject of studies for privatization in the 90s, during the Fernando Henrique Cardoso government, when a subsidiary in the southern region was sold, but the plans did not go ahead due to political resistance.

More recently, under the Michel Temer administration, the Ministry of Mines and Energy resumed discussions on privatization.