Brazil awards European groups airport concessions

Brazil awards European groups airport concessions

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The National Civil Aviation Agency of Brazil (ANAC) has announced that Flughafen Zürich AGVINCI Airports and Fraport AG have won rights to four airports, whose total investment is estimated at BLR6.6 billion (US$7.1 billion).

As we reported in December 2016, ANAC launched the tender process, as part of the Investment Partnerships Program (PPI), called Project Growth, which involves 34 infrastructure projects to be carried out under PPP scheme in Brazil.

Flughafen Zürich AG (Zürich Airport) has been awarded the concession to manage and expand Florianópolis Hercílio Luz International Airport. The Swiss company will own 100% of the airport and operate it under a concession until 2047.

Hercílio Luz Airport is located on the island of Santa Catarina, a holiday destination for both domestic and international travelers. The airport served 3.6 million passengers and had revenue of US$26 million in 2016.

VINCI Airports was awarded the concession for Deputado Luis Eduardo Magalhaes airport, for a 30-year term. The concession contract won by VINCI Airports covers operation, maintenance and extension-upgrading of the existing terminal and the runways system.

Located in the city of Salvador, this airport is currently managed by Brazil’s state-owned Infraero. With more than 7.5 million passengers in 2016, the airport is Brazil's 9th-largest airport.

Fraport AG has won a 30-year concession to operate Fortaleza Pinto Martins International Airport, plus a 25-year contract for Porto Alegre Salgado Filho International Airport, where it will take over the management and operation of both facilities from Infraero. Fraport will be the sole owner and participant of these concessions.

Fraport won the single terminal Fortaleza Airport with the top bid of US$482.5 million and the dual passenger terminal Porto Alegre by bidding US$122.4 million.

Fortaleza’s Pinto Martins International Airport is located in the federal state of Ceará in the north-eastern-most part of Brazil, having handled 5.7 million passengers in 2016.

Porto Alegre Salgado Filho International Airport serves as the gateway to Brazil’s southern-most federal state of Rio Grande do Sul and handled 7.6 million passengers last year.

The three European operators have already established in Latin America and manage different airports in the region:

  • Zürich Airport is involved in Bogotá, Curaçao and two airports in Chile.
  • Fraport owns a share of 70.01% of Lima Airport Partners S.R.L., manages the Peruvian Jorge Chávez International Airport.
  • VINCI Airports is the concessionaire for a 20-year term of the Santiago de Chile International Airport and of six airports in the Dominican Republic, including that of Santo Domingo capital city.

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