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Brazil's Privatization Program provides for privatization in almost all sectors

Written by Paulo Nogueira
Published 13/02/2019 às 09:27

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privatization concession federal government

Even water, sewage and lottery institutions will enter the government privatization program in 2019, in addition to several other sectors

The new Brazilian government is embarking on a program to sell stakes and grant concessions in more than 100 state entities, as part of its effort to pay off Brazil's public debt and reduce the government's role in the economy. the program of privatization it is managed by the Special Secretariat for Privatization and Divestment, a newly created government agency within Brazil's Ministry of Economy.

The federal government is planning to grant concessions or sell its interests in companies with activities in the following industry sectors:

  • Airports – Concessions will be granted to administer and operate a total of 12 airports, divided into 3 geographic blocks (Northeast, Midwest and Southeast of Brazil); In addition, the federal government intends to sell its minority shareholding in the entities that are the concessionaires in the 4 largest airports in Brazil – Brasília, São Paulo, Rio de Janeiro and Belo Horizonte.
  • Energy – Sale of the government's stake in Eletrobras, which is responsible for 31% of Brazil's power generation capacity and 49% of Brazil's transmission capacity.
  • Oil and Gas – Concession to foreign companies to explore all offshore oil basins.
  • Portos – Concessions for the operation of certain terminals in various ports in Brazil.

Additionally, we bring the Brazilian government also intends to grant concessions or sell equity in other sectors, including transportation (roads and rail), mining, Mint (equivalent to the US Mint and the Bureau of Engraving and Printing), water, and sewage. , financial institutions and lotteries, among other industry sectors.

Some RFPs (Editais) have already been published by the different bodies responsible for each concession or public auction. Each agency is charged with formulating the mechanism by which it will select the winning bidder.

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Paulo Nogueira

With a technical background, I worked in the offshore oil and gas market for a few years. Today, my team and I are dedicated to bringing information from the Brazilian energy sector and the world, always with credible and up-to-date sources.

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