Getting Ready for World Cup Brazil Privatizes Galeão and Confins Airports

    Rio's Galeão airport

    Rio's Galeão airport Brazil’s Confins and Galeão airports, respectively in Rio de Janeiro and Minas Gerais, should be handed in to the private initiative. The Federal Government’s forecast is for the call to tender to be published in August 2013 and for the auction to take place in September. The measure was announced by the chief minister of the Civil Aviation Secretariat, Wagner Bittencourt, during the promotion of the Investment in Logistics Program, dedicated to airports.

    According to the minister, the process for concession should strengthen air services during the 2014 Cup. Companies interested in participating in the process must be experienced in airports with a capacity for annual circulation of at least 35 million passengers. “Our expectation is for concession of Confins airport to result in an investment of R$ 6.6 billion (US$ 3.3 billion), and for Galeão airport to result in R$ 4.8 (US$ 2.4 billion),” said Bittencourt.

    According to the government, the bids cannot include majority shareholders operating other airports, following, the standard used in airports that have already been tendered to the private initiative. “This means that all minority partners may participate,” said president Dilma Rousseff during promotion of the investment program.

    Bittencourt also announced a series of measures for stimulation of regional aviation. “In a first phase, 270 airports should receive R$ 7.3 billion (US$ 3.7 billion) in investment, directly or through administrative partnerships,” he explained.

    The Northeast will be among the regions most benefited, with R$ 2.1 billion (US$ 1.1 billion) in investment in 64 airports. In second place comes the North, to receive R$ 1.7 billion (US$ 900 million) for investment in 67 airports; the Midwest, in turn, should receive R$ 900 million (US$ 450 million) for investment in 31 airports, and the Southeast, R$ 1.6 billion (US$ 800 million) for 65 airports; and, finally, the South should receive R$ 1 billion (US$ 500 million) for investment to be made in 43 airports.

    The government also announced the creation of company Infraero Serviços, to be a strategic partner of the national operators. “With this, we are going to qualify the ranks at Infraero and provide adequate services to other airports, possibly also extending services to airports not managed by the company,” said Bittencourt.

    Anba

     

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