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Home Government intends to carry out another 22 auctions this year and has 119 projects already announced

Government intends to carry out another 22 auctions this year and has 119 projects already announced

9 October 2019 to 10: 57
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Bolsonaro government privatization

The Jair Bolsonaro government held 29 auctions in 2019 and another 22 are expected to take place by the end of the year.

The government's agenda of privatizations and concessions advanced and was expanded this year, even with doubts circulating in the process of selling state-owned companies. The government spokesman, General Otávio do Rêgo Barros, said that President Jair Bolsonaro (PSL) has no intention of privatizing Petrobras.

The current number of assets to be offered in auctions for the private sector stands at 119, against 69 at the beginning of the year.

The advancement of partnerships with the private sector and the privatization of state-owned companies in services for airports, highways, railways, ports, among others, is treated as fundamental by the government, since, for them, it can increase the level of investments in Brazil and free up resources public.

Of the 119 projects in the current portfolio, 56 are concessions, mainly in the area of ​​transport and energy, and 16 are privatizations (sale of control or privatization).

Practically all listed state-owned companies are still being analyzed, without a defined schedule or modeling, also depending on congressional approval.

The Investment Partnerships Program (PPI) also brings together leasing projects, PPPs (public-private partnerships), cross-investment, contract extensions and partnerships for the completion of unfinished works.

In addition to expanding the list of state-owned companies to be privatized, including companies such as Correios, Telebras and Ceagesp, the government also announced projects in new areas such as national parks, the environmental licensing of four new hydroelectric plants and works on six highways, the privatization of public ports and studies to enable the completion of works such as the Angra 3 thermonuclear plant.

This year, around 29 projects for the transfer of assets to the private sector were taken off the ground, including 12 airports, 13 port terminals, energy and oil and gas auctions, in addition to the concession of the Norte-Sul railroad and the BR-364/ 365, held on the last day 27.

According to the government, these auctions have already contracted more than R$11 billion in investments to be made over the next three decades.

The Bolsonaro government announced the inclusion of another 83 projects. In May, the Board of PPI announced the inclusion of 59 and, in August, another 24, in addition to studies to develop projects with states and municipalities for day care centers, prisons, basic sanitation, public lighting and cabotage.

The timetable for the privatization and concessions program foresees the completion of another 22 projects by the end of this year. If implemented, the number of projects completed in 2019 should exceed 50.

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