Portuguese government to net 2.4 billion euros from privatizations

17 February 2006

Lisbon, Portugal, 17 Feb – the Portuguese state plans to sell off part or all of its stakes in eight Portuguese companies by 2007, which could raise around 2.4 billion euros to reduce public debt, government officials said Thursday in Lisbon.

According to the privatization program approved in a Cabinet Meeting, the government wills ells its entire stake in paper and pulp companies Portucel Tejo and Portucel and a tranche of oil company Galp.

The sale of Galp alone, which is expected to take place after the Summer, will provide the State with 50 percent of total expected revenue this year, 1.6 billion euros.

Between 2006 and 2007, the government is preparing to sell its total stake in paper distributor Inapa and a further part of its stake in electricity company EDP-Energias de Portugal and electricity distribution network Rede Eléctrica Nacional (REN).

2007 will sale a sale of part of the capital of air carrier Transportadora Aérea Portuguesa (TAP) as well as airport management company ANA – Aeroportos de Portugal, although the latter would only go ahead when details of the new Lisbon airport had been set, officials said. (macauhub)