The Brazilian government is expected to delay the privatization of the power generating company Furnas Centrais Eletricas SA until the beginning of 1999. Shares in the company, which is a unit of the federal power holding company Eletrobras, were due to be sold between October and December of this year.
A spokesman for Furnas said that the delay could be part of a government plan to spread out its planned series of privatizations. This may be necessary to prevent market saturation. The next planned power sector privatization is that of the utility Centrais Eletricas do Para.
In a separate move, the San Paulo utility Eletropaulo is believed to be handing ownership of its distribution company Bandeirantes to the National Development Bank as payment for part of Eletropaulo’s state debt. The distribution company, which serves the Vale do Paraiba region, was expected to be privatized too.
