Government launches package with 34 projects of concession and privatization

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Four months after taking office, the government Michel Temer yesterday presented a new package of infrastructure concessions program. Unlike previous versions, there was caution in the announcement of stratospheric figures of investment and job creation, despite the large number of projects that will be offered to the private sector over the next two years. The government has said, however, that there will be R $ 30 billion in available financing via BNDES and FI-FGTS. (See more concessions will have R $ 30 billion from BNDES and FGTS fund).

In addition to the list of projects, it announced a series of changes in the rules of the concessions, as it extends for a hundred days the period between the publication of notices and the conduct of the auctions. Another new requirement is that public notices can be published only after obtaining prior environmental license. These documents will have versions in English and Portuguese.

As anticipated the value, there will be changes in the performance of regulatory agencies, which will no longer participate in the preparation of bids and the auction organization to focus on the inspection of contracts. “They will be strengthened so that they can fulfill their role to regulate, monitor and enforce,” said the executive secretary of the Investment Partnership Program (IPP), Moreira Franco.

The announcement of the project came after the first meeting of the PPI board, a body that was created by Temer on the same day he was sworn in as interim president. Besides him, part of the PPI board Ministers of Transport, Planning, Finance, Mines and Energy, Civil House and the Environment, as well as the presidents of the three main federal banks.

In all, 25 projects were presented subject to grant, in addition to relicitação three hydroelectric plants Cemig. Later, the government reported that there was an error in the presentation and added nine other assets that will be auctioned, which expanded the list to 34 projects.

Asked about the volume of investments expected, Moreira Franco declined to give numbers. “This program is not an advertising project, a marketing action, wanting to generate an expectation that will not happen,” said the secretary of the PPI.

In the previous presentation of the awards program in June last year, then the government of President Dilma Rousseff was criticized for having included in the package the bioceanic railway project, considered “megalomaniac”. Only this work, which has no prediction leave the paper, turbinou at $ 40 billion the volume of investments announced at the time.

The only projection was made by the Minister of Mines and Energy, Fernando Coelho Filho. He said the relicitações hydroelectric São Simão, Miranda and Volta Grande will generate up to R $ 11 billion in grants. The awards of these plants are close to maturity and may even be renewed.

According to the schedule presented yesterday, the government intends to auction until March of next year the airports of Porto Alegre, Salvador, Fortaleza and Florianopolis. The last government was predicted that these four terminals movimentariam something around R $ 8.4 billion in investments.

One of the main disappointments was the road sector, which came with just two projects. The stretch of the BR-364/365 between Jatai and Uberlandia should go to auction only in the second half of 2017 as well as the relicitação lot of BR-101 / RS, currently managed by Concepa.

According to Valor, it is currently not interested in the highway concessions, not even by that were presented yesterday. The government is working on an interim measure that will facilitate relicitação problematic passages, as well as the anticipated extension of existing concessions. The expectation is that investors only begin to appear after the official recognition of these measures.

The list also has three railways: North-South, Fiol and Ferrogrão. The first two are being built by state Valec and must be delivered to management and operation of the private sector. The government has scheduled three auctions for the second half of next year.

Still in the transport sector, the PPI has scheduled the auctions three port terminals, two fuels in the port of Santarém (PA) and wheat at the port of Rio de Janeiro. These auctions are also planned for the second half of 2017.

In addition to Cemig’s power plants, the energy sector will have three auctions of oil fields and the privatization of seven distribution companies controlled by Eletrobras.

The government wants to hold until June 2017 the fourth round of marginal fields in bidding for oil and natural gas under the concession regime. On the same basis, until next year’s December should take place the 14th round of exploratory blocks. Also scheduled for the second half of 2017 the second round of bidding sharing scheme, calls oil unitizáveis ​​areas.

Were for 2018, the last year of Temer management, concessions of water distribution services, collection and treatment of sewage in cities in Rio de Janeiro, Rondonia and Pará. The granting of sanitation was one of the main innovations of the PPI.

The government also expressed its intention to grant mining assets to the private sector. According to the Minister of Mines and Energy, two copper reserves were selected, one in Goiás and one in Tocantins, a coal Candiota, in Rio Grande do Sul, and other phosphate, on the border between Pernambuco and Paraiba .

It was also made official the process of privatization of Instant Lottery Case, the Lotex.

Source: Valor Econômico / By Murillo Camarotto, Andrea Jube and Rafael Bittencourt / From Brasilia

Automatically translated text provided by Google Translator.