Governor-elect of Brazil's Paraná state rules out utility privatization, for now

The governor-elect of Brazil's Paraná state, Carlos Massa junior, popularly known as Ratinho Jr, said that he is not planning to privatize the state-run water and energy utilities (Sanepar and Copel, respectively) in the short term, but is studying the sale of some of their assets.

In an event held in New York, also attended by Copel president Jonel Nazareno, Massa told investors that the state government's commitments to the two firms would noot be changed when he takes office in January 1, daily Valor Econômico reported.

The governor-elect said that both utilities "are good companies, with good performances, profitability and good service provisions" and that a privatization was not being discussed at the moment. However, it has been reported that his transition team is currently in talks with Copel regarding the sale of non-essential assets, such as its telecommunications division.

At the same time, Nazareno added that Copel is also studying the sale of some transmission lines outside Paraná.

In the case of Sanepar, Massa stated that one of his priorities as governor will be to strengthen the independence of the state's infrastructure and public services regulator Agepar, the entity that is also in charge of authorizing rate hikes for the water utility.