Brazil collects 14.2 billion dollars in airport deals

Feb 6, 2012, 23:45 GMT

Sao Paulo - Brazil raised more than 14.2 billion dollars Monday as it auctioned off the management of its three most attractive airports - Sao Paulo, Campinas and Brasilia - ahead of the 2014 football World Cup.

The concession to private companies of the three airports, which served a combined 50 million travellers every year, reflects President Dilma Rousseff's effort to modernize and expand Brazil's precarious airport network ahead of the World Cup.

Aviation Minister Wagner Bittencourt said that the 'aggressive' bidding reflected that the airports are safe and viable business ventures. With 22 offers received, the winning bids were a combined 347 per cent of the government's asking price in the auction held at the Sao Paulo Stock Exchange.

Sao Paulo's Guarulhos airport, currently Brazil's largest, went for 20 years to a consortium led by Brazil's Invepar for 9.4 billion dollars. Airport Company South Africa (ACSA) holds a minority stake in the venture.

Viracopos airport in Campinas, 100 kilometres from Sao Paulo, is to be operated for 30 years by a consortium led by Brazil's Triunfo and UTC and including France's Egis Airport Operation. They paid 2.2 billion dollars for the concession.

Brasilia airport went for 25 years to the consortium Inframerica, led by Brazil's Infravix and Argentina's Corporacion America, for 2.6 billion dollars.

Although the three airports are to be operated privately, the state body Infraero, which manages most other airports in Brazil, is to retain 49-per-cent stakes, along with the power to veto decisions.

Infraero President Gustavo do Vale emphasized that authorities have no intention to interfere.

'Our interest is only to have access to half the income, so we can keep carrying out investment,' he said. 'We will be partners.'