Bloomberg News

Brazil Said to Plan Rule Change for Airport Contract Auctions

July 19, 2012

Brazil is considering changing the way airport licenses are awarded ahead of the 2014 World Cup and 2016 Olympic Games, which will boost tourism in the world’s second-largest emerging market, according to a state official familiar with the plan.

President Dilma Rousseff may allow construction companies to participate in auctions alone rather than requiring builders to team up with airport operators to bid as a group, said the official, who asked not to be named because the plan isn’t yet public.

Under this model, which is one of several proposals being considered, the operator would be chosen by the construction company after the building contracts are awarded, the official said. The change would ensure that operators with more experience would be hired to run airports.

Brazil’s government is seeking to auction the licenses to expand, modernize and build new runways at Galeao airport in Rio de Janeiro, Confins in Minas Gerais state and Salvador airport in Bahia state. The new rules will be announced this year in a bid to accelerate infrastructure investments to stimulate growth in 2013, said the official.

The press office at the presidential palace declined to comment.

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

To contact the editor responsible for this story: Helder Marinho at hmarinho@bloomberg.net


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