On August 23, 2017, the Brazilian Federal Government announced a new phase of the Investment Partnership Program (“PPI”), comprising 57 new projects, including airports, ports, oil exploitation areas, among other, to be granted to the private sector between 2017 and 2018, representing investments estimated by the Brazilian Federal Government of R$44,5 billion during the agreements’ terms. The announcement also included the privatization of one Brazil’s electric sector leading companies: Eletrobrás, the Brazilian National Mint (Casa da Moeda) and other state owned companies.
Some of the main assets included in this new phase of the PPI are:
• Airports:
o Privatization of 14 airports, including Congonhas/SP, Recife/PE, Maceió/AL, João Pessoa/PB, Campina Grande/PB, Aracaju/SE, Juazeiro do Norte/CE, Várzea Grande/MT, Sinop/MT, Salta-Floresta/MT, Rondonópolis/MT, Barra do Garças/MT, Vitória/ES and Macaé/RJ.
o Sale of the equity interest (49%) held by Infraero in the airports of Guarulhos/SP, Galeão/RJ, Brasília/DF and Confins/MG.
o Creation of a public-private partnership to perform air traffic control.
• Ports: 15 port concessions in 7 organized ports, including 3 grains terminals in Paranaguá/PR (PAR07, PAR08 and PARXX), 3 liquefied petroleum gas terminals (GLP) in Miramar/PA (MIR 01, BEL 05 and BEL 06), 5 liquid bulk terminals in Belém/PA (BEL 02A, BEL 02B, BEL 04, BEL 08 and BEL 09), 1 liquid bulk terminal in Vila do Conde/PA (VDC 12), 1 liquid bulk terminal in Vitória/ES, early renewal of the fertilizer terminal in Port Itaqui/MA and authorization of investments in the “Agrovia do Nordeste” terminal in the of Port Suape/PE.
• Transportation: Concession of federal highways BR-153 between Goiás and Tocantins and BR-364 between Rondônia and Mato Grosso.
• Energy:
o Privatization of Eletrobrás, whose model is pending definition, but that according to the government shall be aimed at dispersing the company’s control, by ensuring that its shares are not held by ne single shareholder.
o Public bid for the concession of the hydroelectric power plant of Jaguara/MG.
o Auction of 11 transmission lines, throughout 10 different states (Bahia, Ceará, Pará, Paraná, Paraíba, Pernambuco, Piauí, Rio Grande do Norte, Minas, Gerais and Tocantins).
• Other projects:
o Privatization of the Brazilian National Mint (Casa da Moeda): responsible for printing paper currency and certain official documents, such as passports.
o Privatization of Lotex: responsible for Caixa Econômica Federal’s instant lottery (raspadinha).
The PPI is regulated by Law No. 13,334/16 and was announced by the current government in 2016 as an initiative to foment the creation of jobs and Brazil’s economic growth through new investments in infrastructure projects and privatization.
For further information, please contact: contato@nbfa.com.br
[mk_divider style=”single_dotted”]
