Follow us on:   

Brazil raises $9 bn in airport auctions
November 23, 2013, 5:54 am

The winners of the auction will start operating the airports in March 2014 [Getty Images]

The winners of the auction will start operating the airports in March 2014 [Getty Images]

Brazil on Friday auctioned two airports in Rio and Belo Horizonte to private investors for a total of 20.82 billion reais  ($9.05 billion), 250 per cent more than the minimum bids.

Friday’s auction was a part of Brazilian President Dilma Rousseff’s efforts to modernize the country’s infrastructure and shore up investor confidence.

Rio is the capital while Belo Horizonte is the largest city in the Brazilian state of Minas Gerais, hosting the busiest airports in the country.

Out of five consortiums vying for the Rio International Airport, also known as Galeao, the Aeroportos do Futuro (Airports of the Future) the winner paid 19 billion reais ($8.26 billion U.S. dollars), the highest bid, for the right to run the airport for 25 years.

The winning consortium is formed by local company Odebrecht and Changi, which operates the Singapore international airport.

Another consortium Aerobrasil, formed by CCR, Zurich Airport International AG and Munich Airport International Beteiligungs GMBH, paid 1.82 billion reais (791 million U.S. dollars) to win the right to operate the Confins airport in Belo Horizonte for 30 years.

By the rules of the auction, Brazil’s state-controlled airport administration company Infraero, which operated most of Brazil’s airports until airport auctions started two years ago, retains a 49 per cent stake in the privatized airports..

The winners are required by the auction regulations to make large investments in the airports under their administration, like building more terminals and jet bridges, as well as parking spaces and cargo bays.

The winners of the auction will start operating the airports in March 2014.

There will be a transition period of 120 days from Infraero’s administration to the consortiums.

Several other airports in Brazil, including the Guarulhos international airport in Sao Paulo, the largest in the country, have already been auctioned to the private sector.


Source: Agencies

One Response to Brazil raises $9 bn in airport auctions

  1. Eraldo Marcelo Kopp Reply

    November 24, 2013 at 12:22 pm

    The situation in Brazil is truly pitiful! Brazil is junking their way of economics via the for sale festival of very important sites!
    Oil places from Colombia, Peru other areas such as Africa and the aluminum deals with Europe were junked! There was a petroleum extraction place where Brazil was involved with since 1912. This truly is extremely concerning because Brazil has shown a huge lack of governance and lack of protocol. Next year 2014 in March, the BRICS are set for a gathering and NOT MUCH was said on regular or local television!
    Brazil defies and shuns any kind of foreign help or intervention due to its 1970’s put up the walls sort of thing and damages the economy greatly!
    There are problems with control towers air control systems, lack of qualified English speaking people, airports badly managed and politicians stealing more than ever…
    The local news are pitiful! Sex, games, sports such as soccer simply dampens the huge problems Brazil refuses to improve on!
    The president has shown herself incompetent and she has ruined the economy! The point is Brazil is yet “under the previous president’s FEVER of economical growth that no longer exists”!
    The president herself has gone on television and she made a big deal of great proportions because of the junking of these two airports for 9BLN. The previous president has received an investment from USA awhile back for 10BLN and thus far no pay back!
    The country has no true direction at this point, and even previous presidents such as Sarney visited the scoundrel politician Genuino caught recently on prison. This shows the Brazilian government as a club of friends with no competence of being part of a new world’s system of trade… The 1970’s put up walls simply destroys the nation…
    A few examples of bad management by the existing president:
    12 soccer stadiums rather than 9 told by FIFA;
    32 combat tanks purchased in May 2013 from Germany OBSOLETE;
    Economy stimulus w/o the knowledge of the people;
    7.2 mln’s of search robots;
    Lack of inspection of the gov. expenses;
    Using sports to cover up the problems…
    Investors being deceived with talk talk phantom plans… such as the infra-structure of roads, airports(some of them being sold) and ports…
    Since Brazil is the weakest of the BRICS, it should be humble enough to take orders from the others but, instead, you find defiance of foreigners trying to help!
    Next year March 2014 should display the wisdom of the existing president, if any, and set the elections for October…

Leave a Reply

Your email address will not be published. Required fields are marked *

Anti-Spam * Time limit is exhausted. Please reload the CAPTCHA.