Brazil court approves auction of São Paulo Congonhas and other 14 airports

RIO DE JANEIRO, BRAZIL – The country’s busiest airport has cleared the final hurdle before being awarded to the private sector. The Federal Court of Accounts (TCU) yesterday (1) approved the auction of Congonhas Airport in Sao Paulo and 14 other terminals that will be auctioned in the 7th round.

The Ministry of Infrastructure intends to hold the auctions in August’s first or second week. According to the ministry, the concession is expected to attract R$7.3 (US$15.2) billion in private investment with the improvement works and terminal expansion.

The airports will be divided into three blocks. The first, led by Congonhas Airport, has another ten terminals in three states: Mato Grosso do Sul, Pará and Minas Gerais. This block includes the airports of Campo Grande (MS), Corumbá (MS), Ponta Porã (MS), Santarém (PA), Marabá (PA), Carajás (PA), Altamira (PA), Uberlândia (MG), Uberaba (MG) and Montes Claros (MG).

For small aircraft, the second block includes Campo de Marte (SP) and Jacarepaguá (RJ) airports. The third block consists of the airports of the two capitals of the Northern Region: Belém and Macapá.

Originally, Santos Dumont Airport in Rio de Janeiro was to be auctioned together with the rural airports in Minas Gerais. However, the auction is not scheduled until 2023, along with Galeão Airport (RJ), whose concession is being returned by the consortium that has operated the terminal since 2014.

TRANSMISSIONS LINES

The TCU also approved the auction of power transmission lines in 13 states, scheduled for June 30. Although this year’s notice has few changes from the auction held in the second half of last year, the TCU made a number of recommendations.

The concession is expected to generate R$15.3 (US$32) billion in private investment and annual revenues (RAP) of R$2.2 billion.

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