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Brazil - Minas Gerais State Privatization Project (Inglês)

The Minas Gerais State Privatization Project's main objective is to support the state's privatization and concession program, making the state government less vulnerable to losses on banking operations and more efficient in the delivery of gas and highway maintenance services. The project will also support social sector grants to mitigate the social costs of adjustment, as well as high priority road and school maintenance and rehabilitation work to ensure that these physical assets do not deteriorate during the adjustment period. The components of this project are (i) privatization of the state banks (Banco de Credito Real de Minas Gerais S. A. - CREDIREAL and Banco de Estado de Minas Gerais - BEMGE); (ii) sale and concessioning of Companhia Estadual de Gas de Minas Gerais - GASMIG); (iii) concessioning of two segments of state roads with a total of 460 kilometers; (iv) establishment of an adequate regulatory framework for the private provision of public services; and (v) fiscal performance consistent with the capital spending program and fiscal indicators cited in the state's Privatization Program Letter.




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