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A mix of local infrastructure developers and foreign airport operators won on Friday two airport concessions in Brazil for a combined R$ 20.8 billion (US$9 billion), paying a premium of more than 250 % over minimum bids.
Brazilian conglomerate Odebrecht and Singapore's Changi Airport Group will have two years to expand Antônio Carlos Jobim (Galeão) airport before the city hosts the 2016 Olympics. The concession period is 25 years.
Brazil's CCR and the operators of airports in Zurich and Munich beat Queiroz Galvão and Spain's Ferrovial for the concession of Tancredo Neves (Confins) airport in Belo Horizonte. The concession period is 30 years.
Wellington Moreira Franco, Brazil's civil aviation secretary said:
"The result of the auction was exceptional. It proves the country is on steady footing and it's attracting great interest from foreign investors."
It was a welcome victory for President Dilma Rousseff, who has struggled to restore credibility with the private sector. The government had to call off auctions for a highway concession and a high speed rail project this year because of weak private-sector interest.
See below the list of bids for Antônio Carlos Jobim (Galeão) airport:
See below the list of bids for Tancredo Neves (Confins) airport:
The signature of the contracts will take place on March 17th, 2014.
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.
According to ANAC, during the life of the concessions, the estimated investments will be the following:
Infraero will retain a 49% stake in the airports and the private investor 51 %.