"We want to ensure a transparent and competitive process for LOTEX"

Explain the role of BNDES in LOTEX's bidding process. What have been the activities done by the bank so far and which are still to be completed?
Guilherme Albuquerque: BNDES is the executor of the LOTEX privatization process, in accordance with the Resolutions of the Investment Partnerships Program (PPI) and presidential decrees. In this sense, in the first phase of the process, the BNDES contracted the consortium of companies that elaborated, with the participation of Caixa and the Ministry of Finance, a detailed analysis of the legal and regulatory framework of the sector in Brazil, as well as the Business Plan and the Economic and Financial Analysis of LOTEX, as well as other products. This set of studies was submitted to the Ministry of Finance, which, as manager of the privatization process and granting authority, approved its contents and sent it to the PPI Board (CPPI), which published a resolution in the Official Gazette last Friday, (01/09). From now on, it will be for BNDES, always in conjunction with the Ministry of Finance and supported by the consortium contracted, to conduct the entire bidding process, conducting public consultation and audience, as well as national and international road shows, all of this prior to the concession auction.

Important international companies already declare interest in the exploitation of LOTEX. Which companies are already registered for the competition? Brazilian companies will also take part in this dispute?
We are still preparing the public consultation, the public hearing and the roadshows. Only after these steps will be published the Bidding Document and the Concession Contract for the Auction.

We know that Road Shows will be made in the cities of São Paulo, London and Las Vegas to publicize the bidding. How will they be and what is the main purpose of this publicity?
The aim of the road shows is to attract and question potential investors to ensure a transparent and competitive process. In each of one, a presentation will be made, followed by sessions of questions and answers.

What are the most important aspects that are being worked on the bidding documents?
All the documents related to the bidding will be placed in public consultation, allowing questions of the company, always with the objective of guaranteeing a transparent and participatory process.

Taking Caixa as an example, which according to some surveys earns 2 out of 3 reais wagered, what changes for the players? What improvements will they see? What percentage will go to prizes from the cost of the ticket?
LOTEX has a specific product, with percentages of payout determined by law. The new operator will be free to implement its product mix, always respecting the percentages provided in the specific legislation of LOTEX.

Today, in addition to physical products, online versions are highly popular. What is provided in the edicts for an online version of instant lotteries?
All documents related to the bidding will be placed in public consultation, allowing questions of society, always with the objective of guaranteeing a transparent and participatory process. Nevertheless, the LOTEX concession allows the instant lottery to be exploited both physically and online.

Is it foreseen in the edict some transfer for social programs within what is collected? What percentage will be allocated to these programs and what areas such as health, education or safety, will benefit more?
Social transfers and their recipients are provided for in specific legislation on LOTEX.

The government's goal is to hold the LOTEX auction later this year. Is this planning on time? We are following all legal deadlines foreseen for the privatization process.

Is there any possibility of a problem arising from the political instability of the country interfering in the sale of LOTEX?
This question should be addressed to the Ministry of Finance.

After LOTEX privatization, what are the prospects for the new instant lottery for the coming years in terms of collection, new products and consumer acceptance?
The perspective of market growth is very good. Brazil is one of the largest markets for the untapped instant lottery segment in the world. In this way, we see a high potential for the business and, consequently, a high collection by the concessionaire, which will allocate most of the amount collected to the Government and to pay prizes. This collection depends, of course, on the consumers' acceptance of the product mix offered by the new opertor.

Beside LOTEX and talking about the whole gaming market; how does the BNDES monitor the legalization process of the gaming industry in Brazil? Does the bank intend to participate in projects in order to accelerate the development of the sector after the approval of a law?
We follow only the bills that are being processed in the Chamber and Senate in order to identify their impacts in the LOTEX privatization process. The mandate of BNDES in this sector is restricted to the privatization project of LOTEX.

Source: GMB Exclusive