Brazil’s federal government has decided to relax, once again, rules of the process of granting the Exclusive Instant Lottery (Lotex) to be able to privatize the so-called "scratch card" (raspadinha), currently managed by Caixa. The notices were published today to modify two central points: the grant payment and the experience that will be required of the future operator.
Payment may now be made in up to 8 installments, and up to 4 times, as provided for in a September resolution last year, which was already trying to facilitate this as a way of attracting investors. In the original model, the minimum grant amount, which remains at R$ 542.1 million (US$ 130m), should be paid in a single installment.
The resolution of this Thursday of the PPI also states that auction candidates must demonstrate experience in the operation of instant lottery venture with a collection of at least R$ 560 million (US$ 135m) in 12 months, less than half of the amount previously required, which was R$ 1.2 billion (US$ 287m). The concession period will be 15 years.
Another important change comes in the form of premium payment, which now also provides for the need to pay virtual bet premium on the banking network, with SECAP being able to regulate changes. In the last edict there was no such possibility, only for the physical.
The government has been trying to grant Lotex to the private sector since July last year, but all attempts have been unsuccessful due to lack of stakeholders. BNDES, which is the process manager, has postponed the lottery auction at least five times last year to attract candidates.
Last week, after the government launched a new package of privatization projects, Ministry of Economy Special Secretary for Privatization, Development and Markets, Salim Mattar, said Lotex's minimum price was too high, which he said , explains the failure of the auctions, but in the resolution of Thursday there was no change in the value of the grant.
AUCTION BIDDING NOTICE
LOTEX PUBLISHING PPI / PND-2019 CONCESSION
The National Bank for Economic and Social Development (BNDES) based on art. 2 of Decree No. 9,155, of September 11, 2017, makes public that it will conduct the bidding for a common concession for the delegation of the operation of the public service of Exclusive Instant Lottery (LOTEX), in the Auction mode:
1) PURPOSE: is the granting of the concession, aimed at operating the public service of Exclusive Instant Lottery - LOTEX under the terms, within the term and under the conditions set forth in the Notice and Annexes.
2) OBTAINING THE NOTICE AND ITS APPENDICES: The Notice and its Attachments may be obtained: i) in electronic media, at the BNDES headquarters, located in Rio de Janeiro (RJ), at Avenida República de Chile, 100, CEP 20031-917 , on business days from August 30, 2019 to October 4, 2019, from 10:00 am to 6:00 pm, by prior appointment with the Investment Partnership Design Area, by the following email address: ad_lotex @ bndes.gov.br; and / or ii) on the page of the "LOTEX Privatization Information Room", on the Internet, with access available through the BNDES website (www.bndes.gov.br) with the provision of the information provided for in the rules provided for in the announcement.
3) CLARIFICATIONS ON THE NOTICE: Interested parties who need further clarifications may request them from BNDES until 6:00 pm on September 27, 2019. The requirements for requests for clarification are set out in the Notice.
4) RESPONSE TO CLARIFICATION REQUESTS: The Grant Committee will issue minutes of replies to requests for clarification by October 4, 2019, making them available for access on the "LOTEX Privatization Information Room" web page, with access available through the BNDES website (www.bndes.gov.br).
5) REQUIREMENTS FOR PARTICIPATION: The requirements for the participation of interested parties, the conditions for submission of documentation, the criteria for judging proposals and the other conditions for the conclusion of the Concession Agreement are defined in the Notice and its Annexes.
6) RECEIPT OF ENVELOPES: Tenderers must present, on October 17, 2019, from 10:00 am to 12:00 pm, at B3 SA - Brasil Bolsa Balcão, located in São Paulo (SP), at Praça Antonio Prado , 48, by representative of the Accredited Brokers, 3 (three) sealed volumes, in 2 (two) ways each, containing: i) Volume 1 - Bid Security; ii) Volume 2 - Written Economic Proposal; and iii) Volume 3 - Qualification Documents.
7) AUCTION: The Auction, with the participation of Bidders who have their Bid Guarantees accepted, represented by Accredited Brokers, will be held on October 22, 2019, at 10:00 am, at B3, located at Praça Antonio Prado, 48, São Paulo / SP, as provided for in the Notice.
8) EXAMINATION OF THE QUALIFICATION DOCUMENTS: After the Auction has been closed, the Granting Committee will only open and review the Qualification Documents of the Bidder who first ranks in the Auction, subject to the rules of the Invitation to Bid.
CLEVERSON AROEIRA DA SILVA
Superintendent Structuring Area of Investment Partnerships
Source: GMB
