Brazil creates a state-owned power company to take over some Eletrobras assets

14 Sep 2021

The government of Brazil has published a decree to create Empresa Brasileira de Participações em Energia Nuclear e Binacional (ENBpar), a company controlled by the Ministry of Mines and Energy, which will take over the Brazilian nuclear company Eletronuclear and Eletrobras’s 50% stake in the 14 GW Itaipu hydropower plant shared with Paraguay. Those two companies are excluded from the Eletrobras privatisation plan and Brazil has set aside a budget of BRL4bn (US$770m) for the new company to acquire those assets. At a later stage, ENBpar may also incorporate Indústrias Nucleares do Brasil (INB).

In July 2021, the country signed into law the basic text of a bill allowing the privatisation of the state-owned power utility Eletrobras, following approvals of the text by the Chamber of Deputies in May 2021 and the Senate in June 2021. The privatisation is expected to take place in early 2022 and is expected to raise around BRL25bn (nearly US$5bn). The proceeds should be used by the government to renew the company’s concessions for hydropower plants and transmission lines.

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