Brazil to Speed Up Privatizations With Billions on the Line
4h ago
Simone Iglesias, Bloomberg News
(Bloomberg) -- Brazil is readying a plan to accelerate the sale of state-controlled assets as well as partnerships with private companies, as part of President Jair Bolsonaro’s push to shrink the public sector and spark investments.
The federal government will put state development bank BNDES in charge of organizing and paying for feasibility studies, which are mandatory for asset sales and auctions and are crucial for their success. BNDES will also be able to hire outside consulting companies based on technical capacity and not just price.
“The bank will use its own resources," Martha Seillier, the special secretary for the government’s Investment Partnerships Program, said in an interview in Brasilia. "If the auction succeeds, it will collect a fee to pay for the services.”
Brazil expects to raise 1.3 trillion reais ($323 billion) over the next several years through auctions of licenses to operate infrastructure including airports, oil wells, and ports, and also through the privatization of state-owned companies such as the postal service and the mint. Those sales represent a centerpiece of both Bolsonaro’s economic policy and efforts to boost the private sector, and local media has reported that he’s demanding faster results in this area.
“The change will make the privatization process more agile,” Sergio Lazzarini, a professor of management at Insper business school, said in a phone interview. “BNDES’ technical staff knows a lot about infrastructure and processes, and the bank operates separately from the government.”
More:
https://www.bnnbloomberg.ca/brazil-to-speed-up-privatizations-with-billions-on-the-line-1.1304905
