Government Decision: Ceagesp Privatization Canceled
The Lula government (PT) has removed Ceagesp (Companhia de Entrepostos e Armazéns Gerais de São Paulo) from the program that privatized state-owned companies in the country.
The state-owned company had been included in the PND (National Privatization Program) in 2019 by then-president Jair Bolsonaro (PL).
In addition to being removed from the program, the decree published this Tuesday (20) in the Official Gazette also revokes its qualification under the PPI (Investment Partnerships Program), which aimed at public-private partnerships.
The decision to remove state-owned companies from the privatization list was one of the first moves of President Luiz Inácio Lula da Silva’s third term (PT), made on January 2, 2023, right after taking office, in the signing of the first economic measures.
The removal of EBC and the Post Office was officially announced last April. At that time, the decree also removed from the list Dataprev (Social Security Technology and Information Company), Nuclep (Nuclebrás Heavy Equipment S.A), Serpro (Federal Data Processing Service), ABGF (Brazilian Agency for Guarantee Funds and Guarantees) and Ceitec (National Center for Advanced Electronic Technology).
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Since his election, Lula had already stated that privatizations would come to an end in the country, causing reactions in the financial market at the time.
In February of this year, the president also announced the removal of 19 forest conservation units from the PND. The measure included two national forests, Brasília in the Federal District and Ipanema in Sorocaba (SP).
These areas were also included in the PND by the Bolsonaro government, through four decrees signed between 2019 and 2022.
Lula’s decree followed a recommendation from the CPPI (Investment Partnerships Program Council) in December 2023 for the conservation units to remain only in the PPI “for the purpose of concession of public support services for visitation.” However, other conservation areas remained on the program’s list.
In the case of environmental conservation areas, the concession of public service provision to the private sector must include funding for conservation, protection, and management of the units.
