#Brazil awards private concessions for three major airports
Airport privatization got underway last month in Brazil, where officials are rapidly moving to upgrade infrastructure ahead of the 2014 World Cup and 2016 Summer Olympics. The federal government in February preliminarily chose winners in the international bidding process for private contracts to operate Sao Paulo Guarulhos (GRU), Brasilia (BSB) and Viracopos-Campinas (VCP) airports.
The Consórcio Invepar ACSA, comprising Brazil’s Investimentos e Participações em Infraestrutura S/A-Invepar and Airports Company South Africa, paid BRL$16.2 billion ($9.3 billion) for a 20-year concession to operate GRU, the country’s leading international gateway. The new managers will invest BRL$1.3 billion on an initial modernization to be completed by 2014 and over the long term will invest a total of BRL$4.6 billion to upgrade the airport.
The InfrAmérica Consortium, comprising Brazil’s Infravix Participações S/A and Argentina-based Corporación América S/A, bid BRL$4.5 billion for a 25-year concession at BSB. It will invest BRL$626.5 million in advance of the World Cup and BRL$2.8 billion long term.
VCP bidding was won by the Consórcio Aeroportos Brasil consortium, comprising Brazil’s Triunfo Participações e Investimentos S/A-TPI, UTC Participações S/A and France’s EGIS Airport Operation. The group paid BRL$3.8 billion for a 30-year concession and agreed to invest BRL$873 million on pre-World Cup upgrades and BRL$8.7 billion long term.
Source: Air Transport World
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