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The Brazillian National Agency of Civil Aviation (ANAC) has launched two tender processes for the concession contracts of Antônio Carlos Jobim (Galeão) airport in Rio de Janeiro, and Tancredo Neves (Confins) airport in Minas Gerais.

Parties interested in participating in the processes must submit their proposals by November 18th. It's possible to bid for both airports but winners will be different for each airport.

The auction will take place on November 22nd at Sao Paulo Stock Exchange (BM&FBovespa). The three highest bids and those bids equal or higher than 90% of the highest bid will participate in the the auction.

The signature of the contracts will take place on March 17th, 2014.

We present below more information about the processes:

Demand

Galeão airport receives annually 17,5 million passengers (the second busiest in the country) and it is projected that it will receive 60 million passengers at the end of the concession period in 2038.

Confins airport receives annually 10,4 million passengers (the fifth busiest in the country) and it is projected that it will receive 43 million passengers at the end of the concession period in 2043.

Minimum bids

The minimum bids to be accepted in the tender process are the following:

• Galeão airport: R$ 4.828 billion (US$2.17 billion)
• Confins airport: $ 1.096 billion (US$494 million)

Estimated Investments

According to ANAC, during the life of the concessions, the estimated investments will be the following:

• Galeão airport: R$ 5.7 billion (US$2.5 billion)
• Confins airport: $ 3.5 billion (US$1.6 billion)

Concession term

According to ANAC, the term of the concessions will be the following:

• Galeão airport: 25 years
• Confins airport: 30 years

Consortia

Each consortium must have an airport operator company owning +25% stake in the consortium (in Guarulhos, Viracopos and Brasília was only 10 %). The operator must have experience operating +22 million passengers a year for Galeao and +12 million passengers a year for Confins, in one of the last five years.

Infraero will retain a 49% stake in the airports and the private investor 51 %. Airlines cannot have a stake in the consortia bigger than 4 %.

The winning consortia of the other airport concessions (Guarulhos, Viracopos and Brasília) will only be able to have a 14,99% stake in the consortium.

More information about the tenders: http://www.anac.gov.br/Noticia.aspx?ttCD_CHAVE=1166

Download tender documents: http://www2.anac.gov.br/Concessoes/galeao_confins/