MercoPress. South Atlantic News Agency

Brazil after billions of dollars to give airports on concession

Wagner Bittencourt said the auction is tentatively scheduled for December 22

Brazil’s secretary of civil aviation, Wagner Bittencourt, has confirmed that the government is looking for at least 1.3 billion dollars for the São Paulo–Guarulhos Airport concession.

The government also expects to get a minimum of 293 million for Viracopos Airport in Campinas and 42.2 million for the international airport in Brasilia, according to Bittencourt.

All three gateways are set to be privatised as Brazil looks to shake-up its airport system in time for the 2014 Football World Cup. Bittencourt said that the winning bidder for Guarulhos Airport will be required to invest 2.7 billion dollars during the 20-year term of the concession and pay the government 10% of gross receipts.

For Viracopos the required investment will be 3.5 billion plus 5% of receipts for a 30-year concession, and for Brasilia 1.2 billion investment plus 2% of receipts for a 25-year concession.

Bittencourt said the auction is tentatively scheduled for December 22, but the federal audit court must first approve the terms of the concessions.

He added that Infraero, the state-owned company that currently operates most airports in Brazil, will maintain a 49% stake in the airports and will hold the veto right on strategic decisions in the joint-ventures with the new private companies.

Elsewhere, it has also been revealed that a 1.97 billion dollars cargo airport is set to be built in the Brazilian city of Tibagi, in the state of Paraná.

The planned terminal will include 8,800m3 of warehouses, four runways and eight hangars, as well as multimodal integration with railroads and highways.

According to BNamericas, the state government plans to support the airport project as a public-private partnership (PPP). The airport will take an estimated three years to build, and once complete will be able handle 7,500 takeoffs and landings each year.