May 25, 2019
Latest News

Brazil to auction licenses to operate 12 regional airports

 Brazilian President Jair Bolsonaro takes part in a military ceremony on March 7, 2019, in Rio de Janeiro, Brazil. EPA-EFE/ANTONIO LACERDA

Brazilian President Jair Bolsonaro takes part in a military ceremony on March 7, 2019, in Rio de Janeiro, Brazil. EPA-EFE/ANTONIO LACERDA

Sao Paulo, Mar 14 (efe-epa).- Brazilian President Jair Bolsonaro's administration on Friday will auction licenses to operate 12 regional airports, a process aimed at generating some 3.5 billion reais ($921 million) in investment.

The auction will take place at the Sao Paulo Stock Exchange, with the 30-year licenses to be awarded to the companies or consortiums that submit the highest bids, according to the National Civil Aviation Agency (Anac).

The 12 airports to be auctioned to the private sector handle nearly 20 million passengers per year and account for 9.5 percent of domestic air traffic.

For the purposes of the auction, they have been grouped into three blocks: northeastern, southeastern and central-western.

The government has set a minimum bid price amounting to 219 million reais in cash across all three blocks, but it expects to raise a total of 2.1 billion reais over the three-decade lifespan of the licenses.

Besides those costs, the winning bidders must commit to investing in airport modernization and improvements. Across all three blocks, that amount is expected to come to 3.5 billion reais.

The first block, which is by far the largest and expected to be hotly contested, consists of airports serving the cities of Recife (Pernambuco state), Maceio (Alagoas), Aracaju (Sergipe), Juazeiro do Norte (Ceara), Joao Pessoa and Campina Grande (Paraiba).

The minimum bid price for that block is 171 million reais in cash, with an additional investment commitment of 2.16 billion reais.

The government has set a minimum bid of 47 million reais and is requiring investment of 592 million reais for the southeastern block, which is composed of airports serving the cities of Vitoria (Espirito Santo state) and Macae (Rio de Janeiro).

Lastly, for the four airports that make up the central-western block - Cuiaba, Sinop, Rondonopolis and Alta Floresta, all located in the state of Mato Grosso - the winning company or consortium will have to submit a bid of at least 800,000 reais and pledge to invest roughly 771 million reais.

Although Bolsonaro's administration has not announced the names of the companies taking part in the auction, press reports indicate they will include German airport operator Fraport, France's Vinci Airports and ADP, Switzerland's Flughafen Zurich and Spain's Aena.

Plans to sell licenses to these 12 regional airports were announced last year by then-President Michel Temer's administration, who launched an ambitious privatization and concession plan after taking office in 2016.

But more than 50 proposed projects were inherited by the rightist Bolsonaro, who took office on Jan. 1 with a pledge to carry out a wave of privatizations to shrink the public sector and reduce a large budget deficit.

News history
Waiting in long lines to buy food is Cuba's current crisis and biggest joke

By Atahualpa Amerise

Mexico's plans for embattled energy sector spark criticism

Eduard Ribas i Admetlla

Champions final to generate 123 million euros, 66 million will stay in Madrid

Madrid, May 24 (efe-epa).- The UEFA Champions League final between Tottenham Hotspur and Liverpool at the Wanda Metropolitano stadium in Madrid will...

Experts stress using digital tools to make Colombian companies more dynamic

Cali, Colombia, May 23 (efe-epa).- Increasing human beings' use of digital tools is the vehicle whereby Colombia's business sector will develop, several...

Trump pledges another $16 bn for farmers hurt by Chinese tariffs

Washington, May 23 (efe-epa).- President Donald Trump on Thursday approved a second aid package for US farmers, this one for $16 billion, with the aim of...

China, Brazil agree to boost trade, cooperation

Beijing, May 23 (efe-epa).- The vice presidents of China and Brazil presided here Thursday over the fifth gathering of the Sino-Brazilian High-Level...

ECB officials warned Eurozone economy may not rebound as expected

By Tom Fairless

Xi pushes for innovation so that China wins the new technological Cold War

By Jesus Centeno

FAA's acting chief won't predict when Boeing 737 MAX will return to flight

By Andy Pasztor

Deutsche Bank CEO signals more cuts to investment bank

By Jenny Strasburg

Israel blockades stem exports from Gaza

By Laura Fernández Palomo

Carlos Ghosn attends first preliminary hearing in Tokyo ahead of trial

Tokyo, May 23 (efe-epa).- The former head of Nissan and Renault on Thursday attended the first preliminary hearing ahead of his trial, as his defense team...

Massive seaweed influx in Cancun's hotel zone

Cancun, Mexico, May 22 (efe-epa).- The hotel zone along the beaches in the Mexican resort city of Cancun on Wednesday experienced a massive influx of...

Journalism in digital age must rethink how to reach its audience

By Gina Baldivieso

Geneva, May 22 (efe-epa).- Venezuela's health minister said here Wednesday that economic sanctions imposed by Washington are to blame for shortages of...

Bucking US sanctions, American Airlines expands flights to Cuba

Havana, May 22 (efe-epa).- American Airlines, the leading international carrier serving Cuba, said Wednesday that it intends to offer additional flights to...

The UK's British Steel begins insolvency proceedings

London, May 22 (efe-epa).- British Steel Ltd., the United Kingdom's second-largest steelmaker, has started insolvency proceedings after the country's High...

Rare earths emerge as China's possible trump card in trade war against US

Jesus Centeno

India's antitrust watchdog surveys e-commerce firms including Amazon, Walmart

New Delhi, May 22 (efe-epa).- India's antitrust watchdog is assessing the domestic e-commerce sector, a step that could have consequences for Amazon.com...

Internal review reveals sexual assault cases in New Zealand parliament

Sydney, Australia, May 22 (efe-epa).- The New Zealand parliament on Wednesday admitted that at least three cases of serious sexual assault had taken place...

UN forecasts global economy to grow 2.7 pct. in 2019, 2.9 pct. in 2020

United Nations, May 21 (efe-epa).- The United Nations on Tuesday downgraded its forecast for world economic growth, announcing that it expects overall...

Plastic waste being made into ecologically friendly houses in western Mexico

By Mariana Gonzalez

Dr. AI comes to aid of China’s ailing healthcare

By Paula Escalada Medrano

Italian airline Alitalia cancels more than 280 flights due to strike

Rome, May 21 (efe-epa).- Italian airline Alitalia has canceled more than 280 flights on Tuesday amid a national 24-hour strike called by air sector unions.

I agree Welcome to news4europe.eu. We use cookies to improve your online experience. Find out more.