Brazilian Civil Aviation Agency approves tender documents for Viracopos Airport rebidding process

On August 24, 2021, the Brazilian Civil Aviation Agency (ANAC) approved drafts for the bid notice, concession agreement, and the technical, economic, and environmental feasibility studies for a rebidding procedure related to Viracopos International Airport. Viracopos is located in Campinas, a city on the outskirts of Brazil’s largest city, São Paulo.

The documents will be available for public consultation for 45 days, during which time all interested parties may submit contributions. ANAC will conduct a virtual public hearing on September 13, where the project will be presented. Parties will also be able to express their interest in the project as mentioned in Public Consultation Notice No. 12/2021, published in the Official Federal Gazette.

According to the Ministry of Infrastructure, the Viracopos rebidding process is set to raise BRL 4.2 billion in private investment for the airport. The auction is expected to occur during the first half of 2022 after other necessary prior phases are concluded.

Judicial reorganization

Since 2012, Viracopos International Airport has been operated by the concessionaire Aeroportos Brasil – Viracopos S.A., the winner of Bid Notice No. 2/2011. The expected term for the concession agreement was 30 years, but the concessionaire faced a financial crisis and had to file for judicial reorganization in May 2018.

During the reorganization proceeding, the concessionaire and its creditors experienced difficulties resolving the former’s BRL 2.88 billion debt. As a result, the creditors only approved the judicial reorganization plan in February 2020, and the procedure was completed in December of the same year.

Rebidding (Relicitação)

Together with ANAC, the concessionaire could only proceed with the rebidding process upon the judicial reorganization ending.

Rebidding (relicitação in Brazilian Portuguese) is an administrative proceeding used for finding an amicable way to terminate concession agreements. As part of the process, another concessionaire is selected through a new public procurement, according to Law No. 13,448/2017. In Viracopos’ situation, the rebidding process was formalized via a second amendment to the concession agreement.

Next steps

After the public consultation period comes to a close, ANAC will analyze the contributions and prepare a definitive proposal for the bid notice and concession agreement drafts, which will then be submitted to the Federal Court of Accounts (Tribunal de Contas da União – TCU).

For more information about the impacts of these measures, contact Mattos Filho’s Infrastructure and Energy practice area.