Sergio Botinha e Raphael Delfino

According to a study made by the Ministry of Aviation last year, Brazil is experiencing a passenger growth rate of 10% a year since 2003, which is a result of the reduction on domestic airfares of 54% on the same time period. Recent downturn in economy slowed consumption and activity, but long term growth is continuously expected.

And Concessions and Public-Private Partnership investments are becoming the most sought solution to fill the need for growth or efficiency in the Brazilian airport sector.

Previous airport concessions raised high level of interest: for example, the concession of Brasília Airport, Confins, Viracopos, Guarulhos and Galeão resulted in combined winning bids of US$ 15,2 billion in recent years, with an estimate of US$ 8,67 billion in investments expected to last until 2032. Considerable increase in the quality of services and upside in commercial revenues were also already identified.

At the end of 2016, the Brazilian federal government announced 4 airports PPP’s to go on tender in 2017. The projects involve the airports serving the cities of Florianopolis, Fortaleza, Salvador and Porto Alegre and that altogether expect a total investment of R$ 6,61 billion during the PPI duration of 30 years each.

The above mentioned projects are part of the CRESCER project, which means “Grow”, by which the Brazilian government aims for considerable foreign investments on the infrastructure sector, which also include energy, roads, ports, mining, oil/gas and others.

Main public actors with active roles are the Ministry of Transport, Ports and Civil Aviation, (which is in charge of the policies, as well as creating and conducting concession & PPP projects),”Infraero” (Company of AeroInfrastructure, a public owned corporation that operates public airports and is associated with some already existing Airport Concessionaires) and ANAC (Produces, enforces and supervises technical and economic regulation).

Regional Airport Investment is also ongoing growth, with a number of regional partnerships under development by State Governments.

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