Privatizations in Brazil, despite the pandemic

President Jair Bolsonaro, during a statement on emergency financial assistance from the federal government in the face of the health crisis in Brasilia, March 31, 2021.

The Bolsonaro government is relaunching its privatization policy this week, after suspending the majority of concessions being put up for sale last year due to the Covid-19 pandemic. For the Ministry of Infrastructure, it is even “The largest set of logistics concessions ever offered in Brazil: 38 airports, 5 ports, 3 railway lines and 11 highways”. For three days, from Wednesday 7 to Friday 9 April, at the Sao Paulo Stock Exchange, the first batches of concessions over 30 years will be put on sale: 22 airports, 5 port terminals and 537 kilometers of freight rail line.

With this event called “Infra week”, the Ministry of Infrastructure hopes to collect 18.5 billion reais (2.75 billion euros) in investment. In June, 16 other airports – including the “jewels” of Congonhas in Sao Paulo and Santos-Dumont in Rio de Janeiro – qualified. “Extremely profitable” by Natalia Marcassa, Under-Secretary for Planning at the Ministry of Infrastructure, will also be offered in concession.

Technical visits

For this first sale of airports, the government has sharply reduced its ambitions, while the aeronautics sector is experiencing an unprecedented crisis: initial estimates have been reduced by an average of 60%. On the other hand, in order to attract investment funds, it is no longer necessary to be an operator in the sector to become a concessionaire. The airports were divided into three regional lots with, each time, an attractive airport alongside minor and poorly equipped airports.

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The “north” lot, for example, includes the airport of Manaus, capital of the state of Amazonas with 2.2 million inhabitants, which houses the largest free zone in the region, considered today as the third largest. industrial hub of the country after Sao Paulo and Rio de Janeiro. But the lot also includes the obligation to manage six other airports in the Amazon region (Boa Vista, Tabatinga, Tefé, Porto Velho, Rio Branco, Cruzeiro do Sul), whose traffic and attractiveness are much lower. It was won on Wednesday April 7 by the French group Vinci. In the lot of the “center”, it is the airport of Goiânia, capital of 2 million inhabitants of the State of Goias, which holds the attention of investors, and to the south, it is that of Curitiba, capital of the state of Parana with 3.4 million inhabitants.

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