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27/09/2017 - 12:34hs
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Gov’t auctions hydroelectric plants for USD 3.8 billion

Four facilities operated by the Minas Gerais state utility have been auctioned this Wednesday in the São Paulo Stock Exchange. The funds will cover part of Brazil’s fiscal deficit.



São Paulo – The Brazilian federal government raised BRL 12.1 billion (USD 3.8 billion) from the auction of four hydroelectric power plants operated by Companhia Energética de Minas Gerais (Cemig), the power utility of the state of Minas Gerais. The auction took place this Wednesday (17) in the São Paulo Stock Exchange (Bovespa).

The first plant to be auctioned was São Simão, spanning the states of Goiás and Minas Gerais. The sole bidder and winner was China’s Spic Pacif Energy PTY, with a BRL 7.18 billion (USD 2.2 billion) bid and a 6.51% premium. The second plant on auctionwas Jaguara, in Minas Gerais and São Paulo. The winner was consortium Engie Brasil Minas Geração, with a BRL 2.17 billion (USD 685.8 million) bid and a 13.59% premium.

The Engie consortium also won the third auction, for Minas Gerais’ Miranda plant, with a BRL 1.36 billion (USD 429.8 million) bid and a premium of 22.42%. The last auction, for the Volta Grande plant in Minas Gerais and São Paulo, was won by Enel Brasil S.A., with a premium of 9.84% and a BRL 1.4 billion (USD 442.4 million) bid. All contracts are for 30 years.

The federal government will spend the sum it collected on trying to make ends meet this year, with an expected BRL 159 billion (USD 50.2 billion) deficit.

*Translated by Gabriel Pomerancblum

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