Brazil to privatize state-owned electricity utility

CNC
Added On August 23, 2017

RIO DE JANEIRO, Aug. 22 (Xinhua) -- The Brazilian government is seeking to sell Eletrobras, its state-owned electricity company and the largest in Latin America, so that the company can offer better competitiveness and agility, "without the tax anchors of public companies."

In a statement on Tuesday, the Ministry of Mines and Energy said that it would suggest the vote to the government's institution for privatizations.

"There is no space for a hike in rates...it is not possible to transfer the problems to the population. The exit lies in seeking resources on the capital market, attracting new investments and new partners," it read.

The minister, Fernando Coelho, explained to the press that the goal was to seek 20 billion reais (6.35 billion U.S. dollars).

The government currently holds 51 percent of Eletrobras shares, as well as 40.99 percent of the company's total capital.

Eletrobras is the largest power generator in Latin America with a total installed capacity of 45,390 megawatts, owning 32 percent of Brazil's total, across 231 hydroelectric, thermal, nuclear, wind and solar plants.

It is also the region's transmission leader, with around 61,000 kilometers of power lines, although it only distributes electricity to six of Brazil's 27 states.

Selling off Eletrobras is part of the Brazilian government's ongoing privatization plan to reduce the country's yawning public debt.