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.

FMI: http://en.wikipedia.org/wiki/Dilma_Rousseff