The National Bank for Economic and Social Development (BNDES) has published the notices for contracting services related to the structuring and implementation of the privatization of two state natural gas distribution companies: the Gas Company of the State of Mato Grosso do Sul (MSGás) and The Pernambucana Gas Company (Copergás).

For both companies, there are two contracting items: "Service A", related to the economic-financial evaluation; And "Service B", which involves the study of alternatives for the evolution of the regulatory model of the sector, the modeling of the privatization process, a complete due dilligence of the company, legal and communication assistance beyond the scope provided in "Service A" and others Professional services.

The estimated global figures for the bids are, in the case of Copergás, up to R$ 2.07 million for Service A, and up to R$ 14.53 million for Service B. For MSGás, the estimated global values are Up to R$ 2.07 million for Service A and up to R$ 13.22 million for Service B.

These bids are part of BNDES 'support to the Investment Partnerships Program (PPI) - created by the Federal Government through Provisional Measure No. 727, dated 05/12/2016, converted into Federal Law 13,334 of 09/13/2016, To strengthen the coordination of investment policies in infrastructure.

So far, seven states have already formally expressed to BNDES the interest in privatizing their natural gas distribution companies:. On July 20, a contract notice was published to hire consultants for the first batch of projects for the states of Pernambuco and Mato Grosso do Sul. Tenders will be held on August 10 and 11, respectively. BNDES support to the states will include the hiring and coordination of consultants who prepare all necessary studies and also support the technical team of the bank throughout the bidding process.

Bidding notices, price announcements, product schedules, prices, deadlines and estimated values of the services are available on the BNDES web page, respectively at the electronic precincts no. 50 (Copergás) and no. 51/2017 (MSGás), which can be accessed Through the link: https://goo.gl/6k9nk3.

Scenario - Driven by Petrobras' decision to reduce its participation (divestment) in several links in the Natural Gas chain, the Ministry of Mines and Energy (MME) is developing the Federal Government's Program Gas to Grow, with the objective of establishing a new Regulatory framework for the sector and guarantee the energy supply, promoting greater competitiveness and the development of the industry. Petrobras has a dominant stake in all links in the natural gas chain (supply, processing, outlets, transportation, distribution and consumption) with consequences for the organization and maturity of this industry in the country.

The distribution of piped natural gas is still carried out by state-owned companies in most units of the federation. Decree 9.036, dated 04/20/2017, authorizes the BNDES to support the states for the structuring and development of privatization projects in the piped gas distribution sector.