Privatization - Brazil

Odebrecht, Changi to bid for US$6.85bn airport concessions

Odebrecht, Changi to bid for US$6.85bn airport concessions

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Odebrecht TransPort of Brazil's Odebrecht group and Singapore's Changi will jointly participate in the international airport concessions of Galeão, in Rio de Janeiro city, and Confins near Minas Gerais state capital Belo Horizonte, budgeted at some 15.1bn reais (US$6.85bn reais).

The consortium plans to bid on both airports, according to executive director of Odebrecht TransPort Paulo Cesana, local financial daily Valor Econômico reported.

While there has been more interest for Galeão, the federal government's recent tender model change allowing for simultaneous bidding on both airports looks to be increasing the amount of potential participants for Confins. Proposals are due November 18, and the bidding competition will start November 22.

At least one more group should be participating in both tenders. It is made up of local infrastructure company CCR (controlled by engineering companies Andrade Gutierrez and Camargo Corrêa) and the companies that operate the Munich and Zurich airports.


As for the Rio airport, at least six consortiums are expressing interest. For more, visit this page.

CONFINS CONCERN

One of the main concerns of the Confins concession is that the construction of a second runway is necessary in 2020. With a price tag that could reach 1bn reais, its necessity is being questioned, according to the report.

Another concern by potential bidders is that future commercial revenue may be lacking as the airport does not serve very many international flights.