To privatize Eletrobrás, Bolsonaro creates a state-owned company that will take over Eletronuclear and Itaipu – Economy

Continuing the plan to privatize Eletrobrás, President Jair Bolsonaro issued a decree to create a state-owned company, Empresa Brasileira de Participações em Energia Nuclear e Binacional, ENBpar. The new public company will be responsible for taking over Eletronuclear and Itaipu Binacional, which should remain under the control of the Union after the transfer from the state-owned company to the private sector. According to the General Secretariat of the Presidency of the Republic, the document will be published in the Official Gazette this Monday, 13.

According to a note from the General Secretariat, the creation of the state-owned company, which will be organized in the form of a joint-stock company and linked to the Ministry of Mines and Energy (MME), “makes the privatization of Eletrobrás feasible.” Recently, the president of the state-owned company, Rodrigo Limp, stated that the forecast is for the operation to be carried out in February 2022, but he did not rule out that there is a plan B if something goes out of schedule.

The creation of the public company is provided for in the Provisional Measure approved by Congress that allows the privatization of Eletrobrás. The legislation requires the Union to maintain under direct or indirect control the companies, facilities and interests held or managed by Eletronuclear and by Itaipu. The Itaipu Treaty does not allow changes that have not been approved by Paraguay, which owns half of the plant, while nuclear exploration is an exclusive activity of the Union, as determined by the Constitution.

“It (the law) also authorizes the creation of ENBpar with the purpose of guaranteeing the maintenance under the control of the Union of the operation of nuclear plants, as well as the ownership of the capital stock and the acquisition of electricity services by Itaipu Binacional by an entity of the federal public administration, to comply with the provisions of the Treaty between the Federative Republic of Brazil and the Republic of Paraguay for the hydroelectric use of the water resources of the Paraná River, which belong to the two countries in a condominium,” says the General Secretariat.

The company will also be responsible for managing the assets of the Union under Eletrobrás’ administration and for managing the financing contracts that used the Global Reversion Reserve entered into until November 2016. The state-owned company will also manage the current account of the National Energy Conservation Program Elétrica, Procel, and contracts for the sale of energy generated by projects contracted under the Incentive Program for Alternative Sources of Electric Energy, Proinfa.