Bloomberg News

Brazil Announces Terms for Three Airport Concession Auctions

October 13, 2011

Oct. 13 (Bloomberg) -- Brazil announced the minimum bids and other terms of its auction for the rights to renovate and operate three of the country’s largest airports.

The minimum bid for the concession on Guarulhos airport in Sao Paulo is 2.3 billion reais ($1.3 billion), Marcelo Guaranys, president of the National Civil Aviation Agency, told reporters in Brasilia. The minimum bid for Viracopos airport in Campinas and for the international airport in Brasilia will be 521 million reais and 75 million reais respectively, Guaranys said.

The winning bidder for Guarulhos will be required to invest 4.8 billion reais during the 20-year term of the concession and pay the government 10 percent of gross receipts. For Viracopos the required investment will be 6.3 billion reais plus 5 percent of receipts for a 30-year concession, and for Brasilia 2.2 billion reais investment plus 2 percent of receipts for a 25- year concession.

Airlines using the airports will be required to pay the operators 7 reais per passenger making a connection, Guaranys said.

The auction is currently scheduled for Dec. 22, though the federal audit court must first approve the terms, said Cleverson Aroeira, executive secretary of the ministry.

--Editors: Harry Maurer, Josh Goodman

To contact the reporter on this story: Carla Simoes in Brasilia Newsroom at csimoes1@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net


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