Minas Gerais Lawmakers Approve PEC Removing Referendum for Copasa Privatization

Overview

• The ALMG passed the constitutional amendment in a second-round vote recorded as 48 in favor and 22 against after the president counted Deputy Bruno Engler’s yes vote post-panel tally.
• Opposition lawmakers protested the count, the session was briefly suspended, and Copasa employees filled the galleries to demonstrate against the proposal.
• The measure waives the popular referendum only for Copasa, narrowing the original 2023 proposal that sought broader privatization flexibility.
• The next step is consideration of PL 4.380, which also needs a qualified quorum, alongside decisions on the transaction structure.
• State officials project completing legislative steps by late November and target closing the privatization in the first quarter of 2026, with options under study including a follow-on share offering, a strategic partner, or an M&A deal.