Economy

Privatization project for Brazil's Postal Service provides federal government as the guarantor of postal deliveries

"No one will stop receiving (letters or orders) anywhere in Brazil," said Communications Minister Fabio Faria

Photo: REUTERS/Ricardo Moraes
Ler em português
  • The bill on the privatization of Correios provides that the federal government must maintain the obligation to guarantee the universality of the postal delivery service;
  • The privatization proposal for the state-owned company should be sent to Congress by the end of the year;
  • Among the measures foreseen in the bill is the creation of a National Communications Agency, in place of the current National Telecommunications Agency (Anatel).

The bill on the privatization of Correios (the state-owned company that is responsible for Brazil’s Postal Service) provides that the federal government must maintain the obligation to guarantee the universality of the postal delivery service, whether through a state-owned company or through concession contracts, the Ministry of Communications said on Wednesday.

The bill was delivered by Brazil’s Minister of Communications, Fabio Faria, to the government’s Undersecretary for Legal Affairs (Subsecretaria de Assuntos Jurídicos, SAJ). The privatization proposal for the state-owned company should be sent to Congress by the end of the year. According to Faria, the privatization process should take place in 2021.

“We have just delivered the bill for Correios. After SAJ [Undersecretary for Legal Affairs], it goes to the Civil Office to be sent to the National Congress. What was up to the Ministry of Communications was done. This is the project that will give conditions to the privatization process in 2021,” said Faria.

READ ALSO: Amazon bets on Prime Day in Latin America to battle local rivals

According to the minister, the bill prepared by the ministry deals with principles, since the more specific rules will be prepared by Congress.

Information passed on by the ministry informs that among the guidelines established by the bill are the obligation, on the part of the federal government, to guarantee the provision of the Universal Postal Service through a state-owned company, signing of common concession contracts, or signing of sponsored concession contracts (indicating that, like other services originally provided by the Brazilian state, the postal service can be passed into the hands of a private company that will perform it under pre-established conditions and deadlines).

“The universality part is maintained. No one will stop receiving (letters or orders) anywhere in Brazil,” said the minister.

Faria also recalled that the National Bank for Economic and Social Development (BNDES) hired a consultancy to study possible business models that allow the privatization of the Postal Service and that it should be ready in 120 days. This study will also be delivered to Congress, to also help to base the parameters of the privatization of Correios.

Among the measures foreseen in the bill is the creation of a National Communications Agency, in place of the current National Telecommunications Agency (Anatel), which will also regulate postal services.

“The bill allows services provided within the scope of the National Postal Service System to be operated in a private regime, respecting, however, the Federal Constitution in its article 21, which establishes that the Union maintains the postal service, which will be delegated to the Postal Operator Appointed in the course of the privatization process of Correios,” informed the ministry in a note.

Translated by LABS