Brazil gov't to auction four power plants by September

Brazil is planning on auctioning four hydroelectric plants that have been returned to the federal government after the end of their contracts—Miranda, São Simão, Jaguará, and Volta Grande, Energy Minister Fernando Coelho Filho announced after a speech held today (May 17) at the opening ceremony of the National Meeting of Agents in the Electric Sector (Enase, in the original acronym).

The government's plan is to hold the auctions in September. They are expected to bring to public coffers between $3.22 billion and $3.54 billion. The Jaguará, Miranda, and São Simão plants had been controlled by Cemig even after the contract was over, by means of a preliminary injunction. The decision was revoked by a court ruling.

The payments are expected to be carried out in the second half-year and had been included in the budget, the minister said.

“The government's haste stems from the possibility of receiving the funds still this year. They had been listed in the budget,” the minister said, adding that the Minas Gerais state government and Cemig have already been informed of the beginning of talks regarding the auctions.

Also likely to be held later this year is the auction of six Eletrobras distributors, which are being studied by consultancies hired by the National Economic and Social Development Bank (BNDES).

Translated by Fabrício Ferreira