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Brazil Auctions Four Airports For USD$1.19 Billion
30-Mar-2017

Brazil Auctions Four Airports For USD$1.19 Billion

March 16, 2017

Three companies were successful in the auction to operate four airports in Brazil, with bids worth BRL3.72 billion reais (USD$1.19 billion) in total.

Fraport said in a statement it won the auction for Fortaleza and Porto Alegre airports with bids of BRL1.5 billion reais (USD$482.6 million) for Fortaleza, and BRL382 million (USD$122.4 million) for Porto Alegre.

Fraport will also pay the government 5 percent of the airports’ annual revenue. The concessions are for 30 years at Fortaleza and 25 years at Porto Alegre.

Vinci was successful in its bid for the Magalhães airport in Salvador, for a 30-year term.

Zurich Airport operator Flughafen Zürich won the concession to operate Hercílio Luz Airport in Florianópolis. The concession is for a 30-year term.

The bid total of BRL3.72 billion reais is 23 percent more than the Brazilian government’s initial estimates. The government said it expects the winning bidders to invest BRL6.6 billion to improve services at the airports.

The four airports account for 11.6 percent of all passengers in Brazil, and 12.6 percent of cargo.

(Airwise)
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