Three separate private consortiums have won the concessions to operate and upgrade Brazil’s São Paulo–Guarulhos, Campinas–Viracopos and Brasilia airports, in deals totalling $14.2 billion.
At an auction today (February 6) the groups won the contracts on the understanding that they will completely upgrade the gateways and overhaul their infrastructure ahead of the 2014 World Cup and 2016 Olympics.
A consortium comprising Brazilian companies Invepar and OAS along with South Africa's ACSA won the 20-year concession to overhaul and operate Sao Paulo's International Airport in Guarulhos with a bid of $9.4 billion.
Meanwhile, Brazil's Triunfo Participacoes and France's Egis Airport Operation won the 30-year concession to expand and operate Viracopos airport in Campinas outside Sao Paulo with a bid of $2.2 billion.
Finally, Brazil's Engevix and Argentina's Corporacion America won the 25-year concession to build a new airport terminal in the capital of Brasilia with a bid of $2.6 billion.
Over the terms of the contracts, the winning bidders are expected to invest an estimated $9.3 billion in the three airports.
The Brazilian government originally said it was looking for at least $1.3 billion for the São Paulo–Guarulhos Airport concession, while it expected to get a minimum of $293 million for Viracopos Airport and $42.2 million for the international airport in Brasilia.
Infraero, the state-owned company that currently operates most airports in Brazil, will maintain a 49% stake in the airports and will hold the veto right on strategic decisions in the joint-ventures with the new private companies.