CNT applauds changes in Brazil airport auction rules

Brazil's national transport confederation CNT, in an analysis published on Monday, welcomed changes the government introduced in August ahead of auctions for concessions to operate 12 small regional airports. Originally, it planned to auction 13.

The government set a variable value for the grants for the concessions. It will be based on the revenues each airport generates through the first 10 years, including the first five years of grace period. Moreover, the government allowed interested parties to participate in the auction of more than one block.

"The major advantage of the new round of concessions is the sharing of demand risk between the government and the new concessionaires, which favors the financing conditions of the projects. The non-payment of concessions in the first five years of the contract also gives financial support to the companies to carry out the works necessary to improve the quality of services and compliance with the international standards required by contract," said Bruno Batista (pictured), CNT executive director.

Initially, planned for December, the auction looks more likely to take place in early 2019, after the new government has settled in.

Airports will be offered in three blocks. The first block includes northeastern airports serving Recife, Maceió, Aracaju, Juazeiro do Norte, João Pessoa and Campina Grande. The second block contains central region airports Cuiabá, Rondonópolis, Alta Floresta and Sinop, while the third lot will comprise two southeastern airports, in Vitória and Macaé.