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Nuclep will be privatized by the government

20 November 2019 to 11: 06
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Nuclep privatization Bolsonaro government

Counting Nuclep and EBC, 17 state-owned companies are in the government's sights of privatization. The list also includes 5G telecommunications networks

This Tuesday, November 19, the Board of the Investment Partnerships Program (PPI) approved the inclusion of another 18 assets for concession to the private sector or for possible privatization. Bolsonaro government signs Eletrobras privatization project and raises expectations of raising BRL 16,2 billion.

The list includes two state-owned companies: Nuclep, a heavy equipment industry, linked to the Ministry of Mines and Energy, and EBC, the federal media conglomerate, created during the second Lula administration and currently linked to the Government Secretariat.

In the case of Nuclep, the government suggested the inclusion of the state-owned company in both the PPI and the PND. In other words, it is yet another state-owned company to officially make up the government's privatization list.

Studies on the model will start from now on, there is still no deadline for the sale to happen. Counting with EBC and Nuclep, 17 state companies are in the sights of privatization.

The state-owned company EBC was included in the study, but is not yet part of the National Privatization Program (PND). That is, the Investment Partnerships Program (PPI), which takes care of privatizations and concessions, will study the company's situation and recommend to President Jair Bolsonaro what to do with the state-owned company.

According to Martha Seillier, special secretary of the PPI, all possibilities are on the table: sale, closure, merger, dismemberment and partnership with the private sector.

In general, inclusion in the PPI is a first step and, if the studies point to privatization, the company goes to the PND and can now follow the procedures to be sold or closed.

The list also includes the auction of radio frequency spectrum for fifth generation telecommunications networks, 5G. The auction is expected to take place in the second half of 2020 and attract BRL 20 billion in investments in 2021.

This Monday, the 18th, President Jair Bolsonaro received the executive director of Huawei in Brazil, Wei Yao, at the Planalto Palace.

According to Agência Estado, the president said that Yao made clear the Chinese company's interest in participating in the 5G band, but that the auction issue was not directly addressed. Bolsonaro also said that there is another company, in this case South Korea, interested in operating 5G in Brazil.

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