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The Court of Auditors Gave the Green Light and the Fruits of These Airport Concessions Will Result in Investments of 14.5 Billion Over 30 Years
The Brazilian Civil Aviation Agency (Anac) has authorized the concession of 22 airports after changes to the conditions of the upcoming auctions. “In light of the new economic scenario and the civil aviation situation following the Covid-19 pandemic, it was necessary to revise the projections for passenger, aircraft, and cargo demand, as well as the adjustment of the previously adopted economic-financial models in this round of concessions,” Anac said in a statement.
The green light from the country’s Court of Auditors is now the only remaining authorization for the concessions that the government plans to offer through three blocks in the first quarter of 2021, combining more profitable airports with less profitable ones.
As part of the new conditions approved by Anac, the minimum fee was reduced to 133 million reais, from 408 million for the southern block and from 22.5 million to 8.2 million for the central block. For the northern block, the minimum fee was increased to 48.2 million from 38.7 million.
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The concessions will require a combined investment of R $ 14.5 billion during their 30-year periods, down from the originally projected 17.8 billion.
The government of President Jair Bolsonaro plans to offer a total of 43 airport concessions during his term, which ends in 2022, as part of a major effort to reduce the State’s role in the Brazilian economy.
The airports were severely affected by the pandemic due to the brutal drop in passengers, and experts do not foresee any short-term recovery for the struggling sector.
In the first seven months of the year, the number of domestic flights fell by 51%, according to Anac.
The Concession Blocks
The northern block will include the airports of Manaus, Tabatinga, and Tefé in the state of Amazonas, Rio Branco and Cruzeiro do Sul in Acre, Porto Velho in Rondônia, and Boa Vista in Roraima.
The airports in the central block will be Goiânia in the state of Goiás, Palmas in Tocantins, Teresina in Piauí, Petrolina in Pernambuco, and São Luís and Imperatriz in Maranhão.
The southern block will consist of Curitiba, Foz do Iguaçu, Londrina, and Bacacheri in the state of Paraná, Navegantes and Joinville in Santa Catarina, and Pelotas, Uruguaiana, and Bagé in Rio Grande do Sul.
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