Fri, Feb 10, 2012
Government Awards $14 Billion In Contracts For Airport
Operations
The government of Brazil made promises to improve its airports
in its bid to land the 2014 World Cup, and in an effort to fulfil
that promise, it recently privatized operations at three of its
main airports with the award of $14 billion in contracts for their
improvement and operations.
The international soccer governing body FIFA has been critical
of Brazil for the condition of its airports. The civil aviation
authority says the number of airline passengers has risen by over
70 million since 2002.
The administration of Brazilian President Dilma Rousseff is
expected to auction off operating rights to additional airports
"soon," including Rio de Janeiro International. A U.S. based
consulting group said that the move should be viewed as one aspect
of a multi-faceted effort to use private capital to improve the
nation's infrastructure. But President Rousseff is being opposed by
some far-left members of her admittedly leftist Workers Party.
The Associated Press reports that the three airports comprise 30
percent of the nation's passenger traffic. The contracts range from
20 years at Sao Paulo's Guarulhos international airport, which will
be run by the Invepar consortium, to 25 years at Brasilia's
airport, which will be handled by Argentina's Corporacion America
SA holding company, and 30 years at Viracampos airport in Campinas.
It will be operated by the Aeroportos Brasil consortium.
The government in August had auctioned the rights to build and
operate an airport near the city of Natal, which will be hosting
the World Cup matches.
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