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External articles (66)

Infrastructure and privatization market is heating up

KPMG is rubbing its hands over privatization fever in Brazil. “Initiatives are currently underway to reorganize and streamline the previously scattered infrastructure procurement process for much higher efficiency and participation—including enhanced governance concerning approval and tendering of projects and efforts to minimize or combine the number of authorities and ministries involved.”

Source: KPMG

Rio Grande do Sul state has launched an initiative to promote concessions and “public-private partnerships”

Rio Grande do Sul state has launched an initiative to promote concessions and “public-private partnerships” (PPPs). “The government started the ‘RS Parcerias’ program to structure and present infrastructure projects for investors. ‘What we are doing in this act is to demonstrate that Rio Grande do Sul has made a very strong and clear decision regarding the partnership with the private sector. We are not thinking about how we can solve this problem. We are saying clearly that the government is aware that the state government alone is not the answer to all the needs of the population, said state governor Eduardo Leite. (…) Concessions for the RSC-287 and ERS-324 highways, state capital Porto Alegre's central bus station, and Sapucaia do Sul zoo are the first projects in the PPP program. Together they demand a 3.4bn-real (US$883mn) investment over 30 years. The government is weighing PPPs for 752km of highways, currently administrated by the state, along with PPPs for local port waterways and school building.”

The government has sold 30-year concessions for 12 airports

The government has sold 30-year concessions for 12 airports, divided in three blocks, Northeast (Recife, Maceio, Joao Pessoa, Aracaju, Juazeiro do Norte and Campina Grande), Center-West (Cuiaba, Sinop, Rondonopolis and Alta Floresta), and Southeast (Vitoria and Macae). There is more to come: “All the winners have said they are interested in the next concession rounds, which are expected for 2020 and 2021 and the government has already announced feasibility studies for 22 airports.” The final round of concessions will take place by the first quarter of 2022.

Source: www.bloomberg.com

The federal government will allow the big foreign banks to finance state governments with cash problems

The federal government will allow the big foreign banks to finance state governments with cash problems, according to a report in Folha de S. Paulo. The Federal Government plans to provide guarantees. So far Citibank, JPMorgan, Bank of America Merrill Lynch, BNP Paribas and Banco Santander have shown interest in providing financing, the newspaper reported. “In order to provide matching funds, state governments can continue with plans to privatize state enterprises.”

Source: www.bnamericas.com

Brazil to privatize more airports, railways for grains

The Bolsonaro government is moving ahead to privatize Brazil’s southern airports and the railway system supporting its grain belt. “Chinese investment would be ‘very well received’ in Brazilian infrastructure projects, said [Adalberto Vasconcelos], head of the PPI government program tasked with luring private investment in the country’s infrastructure. Brazil’s new right-wing President Jair Bolsonaro criticized China for ‘buying up’ Brazil during the election campaign last year. But Vasconcelos clarified that he was referring to strategic assets and ‘means of production’ such as farm land.”i...

Source: U.S.

Will Brazilians Back Bolsonaro’s Plans to Privatize?

In an interview, Latin America Advisor, a business publication, asked Samar Maziad, vice president and senior analyst in the sovereign risk group of Moody’s Investors Service about the prospects for Bolsonaro’s privatization drive. “Although the economic policy direction of the new administration is taking shape with a focus on pension reform and privatization, policy coordination within the government and relations with Congress are untested, posing risks for policy implementation. The new administration will likely face challenges in passing constitutional amendments and will need to work to build coalitions to approve reforms,” Maziad says. “In addition, contradicting views within the administration will likely lead to mixed messages regarding policy direction. If this persists, it could eventually lead to market volatility if reforms are delayed.”

Source: www.thedialogue.org

Transnational companies have increased their investments in Brazil’s health sector

Transnational companies (TNCs) have increased their investments in Brazil’s health sector. They have made a big adverse impact, causing deterioration in working conditions and a fall in the quality of services. The situation has become more problematic because of the parliamentary, legal and media coup that recently ushered in a new era of neoliberal promotion of private foreign investment in Brazil, and labour reforms that cut workers’ rights and create doubt and uncertainty.

Source: PSI

A major corruption scandal may hit efforts to privatize Petrobras

.A major corruption scandal may hit efforts to privatize Petrobras. “Leading global oil traders Vitol, Trafigura and Glencore paid more than $30 million in bribes to employees at state-owned Brazilian company Petrobras in a scheme that may still be going on, prosecutors said. (…) The latest Car Wash chapter could undermine Petrobras' deals and ability to embark on privatization plans that far-right President-elect Jair Bolsonaro's economic team wants to carry out. Petrobras said a month ago it is selling its 50 percent stake in a Nigerian oil and gas exploration venture to a consortium led by Vitol for $1.53 billion as the state-controlled oil company reduces debt. The deal has not yet closed and it was unclear how [the scandal] may affect it.”

Source: U.S.

Brazil to create privatizations secretariat

Future Economy Minister Paulo Guedes told reporters Brazil will establish a privatizations secretariat under far-right president-elect Jair Bolsonaro. “Guedes did not specify whether the secretariat would report to any cabinet minister or be autonomous.”

Source: U.S.