Brazil govt may create a new state-run company to privatize Eletrobras

SAO PAULO, July 22 (Reuters) - The administration of President Jair Bolsonaro may create a new state-run company as part of its plan to privatize power firm Eletrobras, according to documents disclosed late on Tuesday.

The Ministry of Mines and Energy has required an extra 4 billion reais ($776.02 million) in the 2021 budget in case a new state-run company "is necessary," a document signed by secretary Marisete Pereira showed.

The bill on Eletrobras' privatization includes the creation of a state-run company that would hold assets such as the Itaipu hydroelectric plant and a nuclear complex in Angra dos Reis, as well as government programs for the electric sector.

"If the National Congress approves the (privatization) bill 5,877 of 2019 by 2021, the provision of such resources in the referred Budget law is indispensable," the document said, adding the creation of a new state-run company would only happen if the proposal for Eletrobras is approved.

Brazil's constitution determines that nuclear plants cannot be operated by private agents and Itaipu hydroelectric plant, created through a bilateral agreement with Paraguay, cannot be privatized either.

The government aims to raise around 16 billion reais ($3.10 billion) with Eletrobras's privatization. The operation may be carried out in the first half of 2021 if the bill is approved by Congress this year.

($1 = 5.1545 reais) (Reporting by Luciano Costa; Writing by Gabriela Mello; Editing by Bernadette Baum)