Gov't expects competition in airport auctions and lower bids

In a statement made Monday (Mar. 13), Adalberto Santos de Vasconcelos, special secretary for the Program of Partnerships and Investments, said that the government expects competition in the auctions to be held Thursday (16), after which the new private holders of the airports of Porto Alegre, Salvador, Florianópolis, and Fortaleza should be decided.

“I'm sure there's going to be competition [for the airport auctions,” he stated, after the Brazil of Ideas Project, an event held at the Copacabana Palace Hotel, in Rio de Janeiro, “We're not considering the possibility of an airport not getting a bid. All airports are appealing. The rules are clear and there's legal security in the new deals.”

According to the secretary, the government does not expect bids to considerably surpass the minimum offer set for the four airports, as was the case with previous concessions. “Premiums are no sign of success in an auction. We want serious businesses that commit with rendering quality services throughout the execution of a contract, in compliance with the investment program proposed.”

The government hopes to raise at least $951 million with the concessions, with an estimated $2.09 billion in investment for the four terminals. In this round, the Brazilian Airport Infrastructure Company (INFRAERO) will not partner up with the airports.

The auction of the four airports will be held simultaneously, and the winner will be the one with the higher bid for the concession. A group may win more than once, provided the airports are not in the same geographic region. No restriction will be posed to current concessionaires. The winners will pay 25% of the concession value upfront plus the premium, with the remainder being paid over the course of the concession.

Translated by Fabrício Ferreira