SAO PAULO: Brazil's government on Wednesday sold licenses to operate four hydroelectric dams for a total of 12.12 billion reais ($3.80 billion) in an auction won by Chinese and European bidders.

The amount raised is 10.1 percent above the 11 billion reais minimum asking price the government had set.

China's State Power Investment Corp will pay 7.18 billion reais to operate the S?o Sim?o hydropower plant, the biggest of the four assets auctioned.

France's Engie SA acquired two of the licenses for a combined sum of 3.53 billion reais and will operate the Jaguara and Miranda dams.

Italy's Enel Spa won the bid for Volta Grande dam for 1.41 billion reais.

The success of the auction signals strong investor appetite in the privatization program of President Michel Temer, who is trying to raise money to cut Brazil's budget deficit.

Companhia Energ?tica de Minas Gerais previously operated all four dams.

 

 

 

Copyright Reuters, 2017
 

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