2012-02-07

Brazil privatizes three airports ahead of 2014 World Cup

SÃO PAULO, Brazil – The Brazilian government on Feb. 6 privatized three airports – including São Paulo’s Guarulhos, the country’s largest and busiest – at a US$14 billion auction here ahead of the 2014 World Cup.

Three consortiums made up of domestic and foreign operators won concessions to upgrade overloaded terminals at the airports, which are to handle the tens of thousands of tourists expected for the World Cup.

The 20-year concession for the São Paulo airport went to the Invepar-CSA consortium comprising three firms – Invepar, OAS and South Africa’s ACSA – with a bid of more than US$9.4 billion.

Aeroportos Brasil – made up of Triunfo Participacoes, UTC Participacoões and France’s Egis – won the 30-year concession for the terminal at Viracopos airport in Campinas, São Paulo state with a US$2.27 billion bid.

And the Inframerica Aeroportos consortium made up of Engevix and Argentina’s Corporación América won the 25-year concession for the terminal at Brasília’s President Juscelino Kubitschek airport with an offer of US$2.6 billion.

The three airports together account for 30 percent of Brazil’s passenger traffic.

The winning bids on Feb. 6 were three-and-a-half times higher than the minimum required by the National Civil Aviation Agency (ANAC).

One key demand at the auction, held in São Paulo’s Bovespa stock exchange, was that the concessionaire of each airport must complete the work for the 2014 World Cup.

Last August, Inframerica also successfully bid to build and operate the São Gonçalo do Amarante airport near the northeastern city of Natal.

There are about 70 public airports in Brazil, and many are in need of upgrades ahead of the World Cup and the 2016 Summer Olympics due to take place in Rio de Janeiro.

Brazil, the world’s sixth-largest economy, is racing against the clock to build or renovate the 12 arenas that will host the 2014 World Cup, and to complete massive infrastructure projects for the premier sporting event.

[AFP (Brazil), 06/02/2012; Jornal Floripa (Brazil) 06/02/2012]

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