Brazil Plans Eight Privatizations in 2021, Including Postal Service and Eletrobras

RIO DE JANEIRO, BRAZIL – The government plans to hold auctions for the privatization of eight state-owned companies in 2021, including the Correios (Postal Service) and Eletrobras, which will undergo a process of capitalization.

However, both auctions still depend on Congress approval to be held. In the case of Correios, the bill that will enable the company to be privatized has not yet been submitted by the government to the legislature.

The Secretary of Investment Partnerships Program (PPI), Martha Seillier, said on Wednesday, December 2nd that the text should be submitted in “the coming days”. “The Correios Bill is important to attract private partners,” said Seillier at a press conference after the 14th meeting of the PPI board.

The government expects the privatization of the two state-owned companies to take place in the 4th quarter of 2021. With respect to Eletrobras, the PPI Secretary stressed that the capitalization process is a government “priority”. “The company has not taken part in auctions for years. We will not give up the target for Eletrobras,” said Seillier.

In addition to the two companies, the government also plans to hold auctions in 2021 for the privatization of Emgea, Ceasaminas, Porto de Vitória (CODESA), Nuclep, Trensurb and the Brazilian Urban Train Company (CBTU).

Furthermore, the Executive plans to proceed with the liquidation of the Brazilian Guarantee Funds and Guarantee Management Agency (ABGF) next year. The privatization auctions of Serpro, Dataprev, and Telebras are expected to be held in 2022.

Source: Estadão Conteúdo