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Brazil after billions of dollars to give airports on concession

Tuesday, October 25th 2011 - 04:11 UTC
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Wagner Bittencourt said the auction is tentatively scheduled for December 22 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.


Categories: Economy, Investments, Brazil.

Top Comments

Disclaimer & comment rules
  • GeoffWard2

    It will be interesting to see if the Chinese PPP companies bid solus for each airport or use Brasilian companies as front-men.

    It is pleasing that Infraero, the 49% minority partner, will retain strategic responsibility for eg. new runways, freight development capacity, . . . . possibly priority to particular airlines for slots (but see below).
    But this will still be managed corruptly unless there is some oversight to control corruption. For instance LAN/TAM may wish to keep Azul out in the cold and away from the big airports - competitor pressure needs an arbitrator and this should NOT be Infraero. Such matters MUST be made transparent to public scrutiny.

    Because this should not become just another pot of gold from which hundreds of politicians etc can become personal millionaires.

    Oct 25th, 2011 - 11:38 am 0
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