In its fifth decade of existence, Companhia Energética de São Paulo (Cesp) is undergoing a privatization process that has drawn attention from both Brazilian and foreign players, while the state-run firm struggles to fulfill power supply contracts.

This week local watchdog Aneel opened a public consultation to discuss the concession contract draft of the company's largest asset, the Porto Primavera hydroelectric plant (1,655MW).

Extending this concession is key for the privatization process to move ahead, as its first stage involves the sale of the asset, and the contract renewal figures prominently among potential buyers.

"Our perception is that the conditions [for the privatization] are being placed," CEO Mauro Arce said during a conference call with market analysts about the firm's 2017 financial results.

The final date for submitting contributions to the public consultation, which integrates the privatization tender, is April 27.

Meanwhile, São Paulo's government is negotiating with the energy ministry (MME) over the amount Cesp should pay for the 30-year extension, starting in 2028. Local newspapers have previously reported a value of up to 1bn reais (US$300mn).

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