The Privatization of Eletrobras Was Announced in 2017, During Michel Temer’s Administration, but It Did Not Progress.
R$ 16.2 billion is the expected revenue from the privatization of Eletrobras announced by the Government. The amount included in the proposed Budget for next year, submitted to the National Congress this Friday, 30, has been updated; previously, the revenue forecast by the government was R$ 12 billion. The outlook is promising for the three oil and gas auctions that will be held in the second half of the year. For the 16th round, 12 companies are already registered, including large companies and even international firms.
According to the Secretary of the Treasury of the Ministry of Economy, Waldery Rodrigues Júnior, “The PLOA (Annual Budget Law Project) contemplates a revenue of R$ 16.2 billion. We understand that this is a feasible process for the year 2020, but it needs approval from Congress.”
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The amount will be obtained through capitalization. By launching the shares on the market, the Union would relinquish control of the company, reducing its stake from just over 60% to below 50%.
According to the government, there is no intention to include the sale of subsidiaries in the privatization model of thecompany. This guarantee was given on Wednesday, 28, in Rio de Janeiro, by the Minister of Mines and Energy, Bento Albuquerque, at an electric and energy sector event.
Recently, the president of Eletrobras, Wilson Ferreira Junior, stated that there was a possibility of issuing shares within the scope of Eletrobras’ capitalization starting in February of next year. However, Bento said that the model presented to Congress has already been extensively discussed and debated by society, and does not foresee the sale of subsidiaries such as Furnas, Eletronorte, and Eletrosul.
The privatization of Eletrobras was announced in 2017, during Michel Temer’s administration, but it did not progress. Jair Bolsonaro’s administration resumed the proposal and is preparing to submit a new bill to the National Congress addressing the issue.
The project provides for the signing of new contracts for Eletrobras’ hydropower plants that currently operate being paid with pre-defined amounts, with no profit for the company. These plants will be paid for the energy generated at market prices, with profit for the company.
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