Without them, the government risks losing revenues of at least R$17.1 billion (US$ 5.35bn), according to figures listed in the Budget. Resources are considered key to closing this year's public accounts and boosting investments.
According to analysts, projects that face more obstacles include the privatization of Eletrobras, alone responsible for an estimated revenue of R$12.2 billion (US$ 3.8bn); the concession of 13 airports, which could yield at least R$3.7 billion (US$ 1.15bn) to the public coffers; the one of the Instant Lottery (Lotex, the "raspadinha” or scratch card), with a predicted value of R$958 million (US$ 300m); and railways, with R$274 million (US$ 85.6m). The figures are detailed in this year's Budget, which set the target that the gap can not exceed R$ 159 billion (US$ 49.7bn).
The Lotex concession, Caixa's "scratch card", is on the government's schedule. The case is before the Court of Auditors of the Union (TCU). The contract term has already been reduced from 25 to 15 years, to attract more stakeholders. Even so, the bid, which was promised for last December, should be held only in the second half. The government also runs a study for the privatization of the Mint, but there is no definite model.
For specialists, the project portfolio has the potential to attract a diverse range of strategic and financial investors. The problem is meeting the schedule, even more in an election year. The government acknowledges that it is a "challenge", but it guarantees that it will finalize everything this year. The privatization of Eletrobras, for example, faces strong political resistance, especially in the banks of the Northeast and Minas Gerais. President Michel Temer, however, decided to send the bill to Congress this week. The measure should act as a positive signal to investors at the World Economic Forum in Davos.
According to lawyer Fernando Vernalha, partner of the VG & P office, most projects are complex, long-term and require preparation time. "We do not know how advanced the government is in relation to many projects. The concessions structure is limited, although very good, but it is a small team. There is a fear that the government will not be able to conclude all these projects this year," said Vernalha.
Source: GMB / O Globo
