In view of Brazil's current economic scenario, many companies have filed applications for judicial reorganization as a way of renegotiating their debts in order to maintain their activities and carry out their corporate purpose. Often, they must resort to this procedure without prior approval by the general meeting, which is pending further confirmation per the terms of article 122, sole paragraph, of the Brazilian Corporations Law.
Presidential Decree (MP) No. 845/18, published on July 20, established the National Railway Development Fund (FNDF), with the objective of allocating resources to the national railway system. The FNDF will give priority to the implementation of the stretch between the Port of Vila do Conde in Pará and the North-South Track (EF-151 or FNS). The investments will start in the municipality of Barcarena/PA, per the terms of article 3 of MP 845/18.
Awaited since November of 2017, the Sanitation Presidential Decree was finally promulgated on July 9. Despite the differences with respect to the versions submitted for public consultation, the rule maintained its foundations, which, if confirmed via its conversion into law, will increase the participation of private enterprise in the sector, thus favoring the structuring of new projects.
On May 29, the federal government published the initial drafts of the call for bids and concession contract for the new round of federal concessions, which will include 13 airports, distributed in three blocks:
Antaq contemplated the main changes brought in by Decree No. 9,048/17 in relation to private port terminals (TUPs) in Normative Resolution No. 20/2018, published in May of this year, and revoked the previous resolution on the subject (Resolution No. 3,290/14).
In a new chapter of the regulatory modernization of the mining sector in Brazil, the government published yesterday (June 14), Decree No. 9,406/2018 and Decree No. 9,407/2018, through which, respectively, (i) new regulation for the Mining Code, repealing Decree No. 62,934/1968, have been created, and (ii) the transfer of the CFEM (Financial Compensation for the Exploration of Mineral Resources) to municipalities affected by the mining activity has been approved.
After the approval and promulgation of Legislative Decree No. 15/2018 by the Federal Senate, on March 20, the Agreement on Air Transport between Brazil and the United States (Open Skies), signed by former presidents Dilma Rousseff and Barak Obama in 2011, awaits only the promulgation of a presidential decree to be enacted.
The public notice for projects qualified during the fifth meeting of the Council of the Investment Partnership Program (CPPI), held on March 25, is expected to be published by next quarter, and the auction is expected to be held later this year for contracts for the beginning of 2019.
In accordance with a "strategic reflection" process that redefines its central role in financing transactions to a profile that is more complementary to the capital market, BNDES has announced new financing conditions that establish priority areas for development of Brazil’s infrastructure, with smaller spreads and longer grace and amortization periods, aiming at the promotion of target sectors of the economy.
The Ministry of Mines and Energy (MME) submitted to the President of Brazil a proposed bill (PL) relating to the reform of the electric sector and covering a variety of significant changes to the sector that have long been awaited.
The validity of maritime mortgages registered abroad has been subject to judicial battles for the past few years in Brazil, in the context of the OSX 3 Leasing B.V. case. The debate has finally reached a positive outcome for creditors, represented by Nordic Trustee ASA as the trustee and mortgagor, thanks to a decision issued by the Superior Court of Justice (STJ) on November 17, 2017, and published on February 1, 2018.
Since the Social Security Reform failed, the Federal Government announced that it will prioritize institutional micro-reforms. One of them is the new framework for regulatory agencies, the subject of Senate Bill (PLS) No. 52/2013.
Forwarded to the National Congress on January 22 by the President of the Brazil, Michel Temer, Bill No. 9,463/2018 should raise important debates during its review in the coming months. The text recommends the inclusion of Eletrobras (Centrais Elétricas Brasileiras S.A.) in the National Privatization Plan (PND) and establishes the rules and conditions for this procedure.
The expansion of the power sector, one of the flagships in Brazil's infrastructure, has been assured in recent years by investments obtained in several auctions of new, existing, and reserve energy held by the Federal Government through the National Electric Energy Agency (ANEEL) and the Electric Energy Trading Chamber (CCEE).
After lengthy discussions, at the end of November the Federal Senate approved two presidential decrees that alter the legislative environment of the mining sector. MP 789, which modifies the rules of Financial Compensation for the Exploration of Mineral Resources, CFEM, and MP 791, which creates the National Mining Agency to replace the National Department of Mineral Production. The final texts of Conversion Bills Nos. 38/17 and 37/17, submitted for presidential approval, were finally converted, respectively, into Laws No. 13,540/2017 and 13,575/2017, published in the Official Federal Gazette on December 19 and 27.
