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The 5th round of airport concessions is authorized

31Out2018Oct31,2018
Administrative Law

In 2017, the federal government included in the list of the Investment Partnerships Program (Programa de Parcerias de Investimentos – PPI) the concession of 13 airports spread across different regions of Brazil. The Civil Aviation Secretary – SAC of the Ministry of Transport, Ports and Civil Aviation – MTPC disclosed the notice for public call for studies No.1/2017, seeking to receive, develop and compile projects, surveys, investigations and technical studies to assist with the modeling of the 5th round of airport concessions, including the 13 airports for concession.

After the exclusion of one of the airports (located in Barra do Garças, in the State of Mato Grosso) from the 5th bid round, the privatization process plan was submitted to the Federal Court of Auditors (Tribunal de Contas da União – TCU) for approval. Following the TCU's Rapporteur, Minister Bruno Dantas, the Plenary unanimously authorized the proceeding concerning the privatization, contingent upon the correction of certain inconsistencies indicated by TCU's technical unit regarding the Study of Technical, Economic and Environmental Feasibility (Estudo de Viabilidade Técnica, Econômica e Ambiental – EVTA) of airports located in Vitória, Cuiabá and Macaé.

The amendments in the EVTA may require the re-drafting of the bid notice submitted to TCU, but in accordance with representatives of the PPI, the auction should be held in the first quarter of 2019.

Information in the preliminary bid notice.

Objective. The concession plan covers the expansion, maintenance and operation of airports that integrate the blocks offered.

Coverage. The 12 airports in the bid notice represent 9.5% of the Brazilian market with approximately 20 million passengers a year. The round of concessions will occur in blocks, as follows:

  • Northeast Block: Airports of Recife (in the state of Pernambuco), Maceió (in the state of Alagoas), Aracaju (in the state of Sergipe), João Pessoa (in the state of Paraiba), Campina Grande (also in the state of Paraiba) and Juazeiro do Norte (in the state of Ceará). 

  • Southeast Block: Airports of Vitória (in the state of Espírito Santo) and Macaé (in the state of Rio de Janeiro) 

  • Central-West Block: Airports in the state of Mato Grosso, namely Cuiabá, Sinop, Rondonópolis and Alta Floresta.

Period. The concession will be granted for 30 (thirty) years and cannot be extended, except to review the economic-financial balance of the concession agreement, in which case it can be extended to up to 5 (five) years.

Proposals requirements. The bid will adopt the highest initial contribution criterion and the minimum amounts contemplated in the bid notice are, as follows: (i) Northeast Block: BRL 360.437.148,00; (ii) Central-West Block: BRL 10.376.739,00; and (iii) Southeast Block: BRL 66.805.147,00.

For additional information regarding the next steps regarding the bid or consultancy on the ongoing concession proceedings, please contact our partners in the infrastructure and aviation teams.

For further information, please send an e-mail to [email protected]

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