The incoming Brazilian administration is embarking on a program to sell equity interests and grant concessions in over 100 state-owned entities, as part of its effort to pay Brazil’s public debt and reduce the role of government in the economy. The privatization program is administered by the Special Secretariat of Privatizations and Divestments (Secretaria Especial de Desestatização e Desinvestimento), a newly-created government agency within Brazil’s Ministry of Economy.
The federal government is planning to grant concessions or sell its holdings in companies with activities in the following industry sectors:
In addition, the Brazilian government also intends to grant concessions or sell equity stakes in other sectors, including transportation (roads and railroads), mining, Casa da Moeda (equivalent to the US Mint and the Bureau of Engraving and Printing), water and sewage, financial institutions, and lottery, among other industry sectors.
Some RFPs (Editais) have already been published by the different agencies in charge of each concession or public auction. Each agency is in charge of formulating the mechanism through which it will select the winning bidder.
Bryan Cave Leighton Paisner's corporate team, based in Miami, has extensive experience representing bidders and state-owned companies in privatizations in Brazil and in other countries in Latin America.