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News > Brazil

Bolsonaro Signs Bill To Privatize Electrobras

  • The bill, passed by the Senate on June 17, opens the company's shares to private capital by diluting the state's 61 percent stake.

    The bill, passed by the Senate on June 17, opens the company's shares to private capital by diluting the state's 61 percent stake. | Photo: Twitter/ @MV_Eng

Published 13 July 2021
Opinion

As warned by former President Luiz Inácio Lula da Silva, the decision jeopardizes Brazil's energy security and damages Latin America's largest power company. However, the opposition remarked that privatization would translate into higher power taxes. 

Brazilian President Jair Bolsonaro signed on Tuesday a bill that advances the privatization of the electricity company Electrobras, which produces 30 percent of the country´s power.

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The bill, passed by the Senate on June 17, opens the company's shares to private capital by diluting the state's 61 percent stake. The government hopes to acquire $4.95 billion from the share sale, but it will keep a golden share to vetoes stakeholders when needed.

"Bolsonaro makes official the nomination of pastor and government attorney general, Andre Mendonça, as the new Supreme Court minister. He had promised someone "terribly evangelist" for the position. He is the 2nd minister nominated by the president; it is up to him to nominate 2 in his administration."

As warned by former President Luiz Inácio Lula da Silva, the decision jeopardizes Brazil's energy security and damages Latin America's largest power company. However, the opposition remarked that privatization would translate into higher power taxes.

Moreover, the group ABRACE, which represents large industrial consumers, warned that the bill becomes even more expensive to consumers, including the costs of building gas-powered plants on sites that lack natural gas. 

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