Brazil’s National Power Authority (Aneel) on Wednesday scored an important advance in the nation’s concession and privatization program, with the sale of all four hydroelectric concessions put up for auction in Sao Paulo. The government auctioned four hydroelectric stations controlled by Minas Gerais-based government utility Cemig. The four were sold at modest premiums against reserve prices, bringing R$12.1 billion into government coffers. Reserve prices were set at a total of R$11 billion. The four hydroelectric stations have combined capacity of 2,922 megawatts. Concession holders will be able to manage the properties for 30 years. The government will apply proceeds from the sale to general revenues. The sale was considered crucial in government efforts to comply with a 2017 budget deficit ceiling of R$159 billion. The auction was also considered a test of investor interest in the government’s sweeping concession and privatization program. Winners in Wednesday’s auction were China’s SpicPacif Energy PTY and two Brazilian consortiums, Engie Brasil and Enel Brasil. Engie Brasil won two concessions, Enel Brasil and SpicPacif Energy one each.
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