Can 2021 still be the ‘year of privatizations’ in Brazil?
Private sector investment led to a Q1 GDP surge, with drought and energy shortages the main threat to economic revival.
Bankers and investors have been promised that the Brazilian government will ensure a strong pipeline of privatizations and concessions in the second half of this year, according to Adolfo Sachsida, Brazil’s secretary of economic policy.
Sachsida, speaking to Euromoney on the virtual sidelines of the Brazil Investment Forum, said the government was committed to passing legislation that would bring the state monopolies for electricity generation (Eletrobras) and the post service (Correios) to the market this year.
“2021 will be the year of privatizations in Brazil,” says Sachsida. “We also have a lot of concessions – with the most important of them being 5G – which will take place this year.”
That 5G auction could raise R$35 billion alone, and other potentially high-profile, lucrative concessions include the Port of Santos and Rodovia Presidente Dutra – the toll road that links São Paulo and Rio de Janeiro.
While Sachsida said the legislation for these high-profile privatizations will be passed in 2021, he declined to commit to them being completed this year.