Privatization of EGF raises doubts the Competition – publico

Privatization of EGF raises doubts the Competition – publico

                 

                         
                     

                 

 
                         

President of the Competition Authority (AdC) returned on Wednesday to recognize that there are matters of concern to the regulator in the privatization of EGF, the sub-holding company Águas de Portugal for the treatment of municipal solid waste, the Government sold to SUMA (Mota-Engil) for 150 million euros.

                     

                         At the exit of the Committee on Budget and Finance, António Ferreira Gomes revealed to reporters that the CA sent the 13 entities that were formed as counter-interested in the process a draft decision on the passage of the operation to the detailed investigation phase.

The 13 opposing parties now have an opportunity to comment on the issue before the CA state whether or not the operation goes further investigation. There is still no decision, says Ferreira Gomes. But there are concerns.

“This is not a typical vertical relationship” because municipalities (which are both customers and shareholders of EGF) are involved, but there is a value chain involving SUMA and the EGF: the first in the municipal solid waste collection and the second in the treatment and recovery of such waste. “It is this vertical relationship we wish to clarify and assess whether can here during some kind of competitive justice concerns,” said the president of the Competition Authority.

In the presentation made on Wednesday to Members, Ferreira Gomes needed the Government asked the Competition Authority before initiating the privatization of EGF, two opinions on the restructuring of the sector: one on the decree concerning the legal status of the right to work and management in the public interest of multinational systems treatment and selective collection of municipal waste and the other on the laws relating to amendment of the articles of multinational systems concession to companies of the EGF group.

In May, also off a hearing in this committee, the regulator recognized that such advice, issued by the Special Unit for Evaluation of Public Policies (UEAP) of the PCA left some alerts and that one of the recommendations that was made to the Government was to sell the company that manages the collection and treatment of waste from most Portuguese more than one private (EGF consists of 11 multimunicipal systems). But this recommendation was not accepted by the executive, who opted for sale of EGF block.

Litigation Valorsul
concerns of PCA are not the only cloud overshadowing the process of privatization of EGF. Valorsul, the main asset of the EGF (whose shareholders are the municipalities of Lisboa, Lisboa, Lisboa, Vila Franca de Xira and Amadora) maintains strong opposition to privatization and shall hold at 2 March, a new general meeting intended to avoid the EGF the shareholder structure of the company.

This is the second attempt by municipalities to hold a meeting to approve legal action to exclude the shareholder EGF, under the unfair accusation of conduct contrary to the interests of society. A first meeting was convened in early February, did not take place because the EGF was not present, but municipalities Valorsul should return to the attack next month.

“We are still analyzing an opinion of EGF, but it seems that it is confirmed “the AG said Wednesday the PUBLIC President of the Chamber of Loures, Bernardino Soares.