In another step forward in its privatization agenda, on Tuesday night (23rd), the Bolsonaro government handed Provisional Measure (MP) 1310 to the nation’s Congress, giving the green light for research aimed at privatizing the State owned power provider, Eletrobras.
The idea is to create a path for the sale of company, which since 1962 generates, transmits and distributes electricity throughout the country.
The document was published in an off the hour edition of the government’s Official Gazette last night. “The privatization of Eletrobras will be carried out in such a way as to increase its capital, through offering shares to the public, and waiving the Union’s right to be a shareholder”, says the text.
“Our privatization agenda continues at full throttle,” said President Jair Bolsonaro in a brief press conference given while introducing the MP.
The head of State added that Congress will give his privatization agenda “due urgency”. In a nod to the administration’s narrative, Arthur Lira, who presides over the Federal Congress, announced that the proposal will start being debated in the chamber next week.
As a provisional measure, the initiative can be enforced as law, but needs the approval of the Legislative Branch to become definitive. The statutory time frame for considering an MP in Congress is 60 days, extendable for another 60. In case it is not voted on until the end of this period, the measure expires and loses its validity.