Brazil tenders $3bn of airports

Guarulhos, Viracopos and Brasilia airports – responsible for 30% and 57% of the country’s passenger and cargo throughput respectively – are up for grabs with an auction set for February 6, 2012, on the Sao Paulo Stock Exchange.

Brazil’s aviation agency – ANAC – has launched a tender for the privatisation of three of the country’s airports – Sao Paulo’s Guarulhos Airport, probably the country’s busiest hub; Viracopos Airport, in the city of Campinas; and Brasilia Airport, which serves Brazil’s capital.

Interested bidders will be able to take part in the one-day auction for the airports – to be held on February 6, 2012 on the Sao Paulo Stock Exchange – and, while able to bid for all of the airports, will only be allowed to walk away with one per consortium, ANAC stated. Together, Guarulhos, Viracopos and Brasilia are responsible for 30 percent of Brazil’s passenger throughout and 57 percent of all cargo moving through the country.

Bidders interested in Guarulhos, the prize asset, will have to offer a minimum of R$3.4 billion (€1.4 billion; $1.8 billion) in order to win the 20-year concession to operate and develop the airport. The winner will also have to commit to investing $4.6 billion in Guarulhos over the life of the concession, including R$1.38 billion billion over the 18-month period leading to the 2014 World Cup, to be hosted by Brazil.

Campinas Airport will require a minimum bid of R$1.5 billion, with R$8.7 billion in investments required over its 30-year concession period, including R$873 million in the run-up period to the World Cup.

Finally, Brasilia Airport’s 25-year contract can be had for a minimum of R$582 million and a commitment to invest R$2.8 billion in developing the airport over the life of the contract. Similar to the two previous contracts, investors will have to invest R$626.5 million in refurbishments during the 18-month period leading to the World Cup.

The private sector will be able to bid for a 51 percent controlling stake in each airport, with the state retaining a 49 percent shareholding in each. According to the bidding documents, airport tariffs are not set to increase, but a new tariff on connecting flights, to be paid by the airlines, will be introduced.

Brazil has experienced remarkable passenger growth across its airports over the last few years. From 2003 to 2010, passenger traffic in Brazil grew by 118 percent compared to a 40 percent increase for world passenger traffic during the same period, ANAC pointed out.

To access the bidding documents, in Portuguese, please click here