Brazilian president auctions off 12 airports to private operators

Editado por Jorge Ruiz Miyares
2019-04-04 17:39:01

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Brasilia, April 4 (RHC)-- Brazil's President Jair Bolsonaro has auctioned off contracts to operate 12 airports, a measure which raised about $921 million in private investments.  The auction was carried out at the Sao Paulo Stock Exchange and concession contracts will be valid for 30 years, according to the National Civil Aviation Agency (Anac).

At least 10 companies submitted auction proposals last month for the 12 airports, public infrastructures which account for 9.5 percent of the domestic market and manage almost 20 million passengers per year.

According to the local newspaper Terra, among the interested companies are the Brazilian Patria, Socicam and Construcap; the French Vinci and Aeroports de Paris; the Swiss Zurich AG; the Spanish Aena; and the German AviAlliance and Fraport.

Some of these foreign companies already have a presence in Brazilian airports.  For instance, Zurich manages the Florianopolis and Confins contracts; Vinci runs the terminal of Salvador, and Fraport operates in Porto Alegre and Fortaleza airports.

The Brazilian Federal government will also action 22 more terminals in this fiscal quarter, as reported by Terra.  This new privatization deal will include terminals in Foz do Iguacu, Navegantes, Londrina, Joinville, Pelotas, Uruguaiana, Bage, Manaus, Porto Velho, Rio Branco, Boa Vista, Cruzeiro do Sul, Tabatinga, Tefe, Goiania, Sao Luis, Teresina, Palmas, Petrolina and Imperatriz.

The airport privatization package may even increase in the future as Bolsonaro’s administration continues to talk with Brazilian local authorities to convince them to enter into its concession contracts plan.

 

Under the Michael Temer administration, more than 50 infrastructure privatization projects were planned, although they were not finalized.  These proposals were inherited by Bolsonaro, who assumed power on January 1st and vowed to privatize "everything possible" so as to downsize the Brazilian State.

 



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