The Brazilian federal government raised $3.8 billion in the auction of four hydroelectric plants operated by the Minas Gerais Energy Company (CEMIG). The auction was held Wednesday (Sep. 27) at B3 Stock Exchange, former BM&FBOVESPA, in São Paulo.

The first asset, the São Simão dam, on the border between the states of Minas Gerais and Goiás, is to be operated by the Chinese Spic Pacif Energy PTY, who bid $2.25 billion—the only offer made—with a premium of 6.51%.

The second asset, the Jaguara plant, in Minas Gerais and São Paulo, was won by the Engie Brasil Minas Geração consortium with a $680 million bid and a premium of 13.59%.

The same consortium was the winning bidder of the third asset, Miranda, in Minas Gerais, with an offer of $426 million and a 22.42% premium.

Volta Grande—in Minas Gerais and São Paulo—the last asset, is to be run by Enel Brasil S.A., with a premium of 9.84% and a bid of $438 million. The contracts are to be in effect for 30 years.

The amount fetched will be used by the government to settle this year's accounts with the estimated deficit of $50.1 billion.

Protest

Outside the stock exchange, members trade union movements staged a demonstration against the auction. Some of the demonstrators managed to enter the building showing posters opposing the privatization moves. The auction will hand national heritage over to foreign hands, boosting electricity costs, demonstrators argue.