ARTICLE
13 March 2013

Brazilian Government Orders Inclusion Of International Airports In Rio De Janeiro And Belo Horizonte In National Privatization Program

MF
Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados

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Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados
Decree No. 7,896 of February 1, 2013, orders the inclusion of Rio de Janeiro′s international airport, "Galeão", and Belo Horizonte′s international airport, "Confins", in the National Privatization Program.
Brazil Transport
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Decree No. 7,896 of February 1, 2013, orders the inclusion of Rio de Janeiro′s international airport, "Galeão", and Belo Horizonte′s international airport, "Confins", in the National Privatization Program. According to the decree, Brazil′s civil aviation regulatory authority, ANAC, will be responsible for implementing and monitoring the privatization of the public services provided at these airports under the supervision of the Department of Civil Aviation ("SAC") of the Brazilian Presidency. 

SAC is also charged with responding to inquiries and conducting and approving studies and surveys in support of the process of privatizing Galeão and Confins. By means of Ordinance No. 9 of January 29, 2013, SAC authorized the company Estruturadora Brasileira de Projetos ("EBP") to carry out preparatory technical reviews for the concessions pertaining to these airports. By no later than April 18, 2013, EBP is expected to deliver evaluations of marketing, engineering, environmental, economic, and financial issues. Any individual or legal entity may also submit technical reviews, provided that an authorization request is filed with SAC within ten working days of the publication of the above-mentioned Ordinance No. 9 (i.e., no later than Friday, February 8th) in accordance with the guidelines stated therein. However, it is very important to note that such authorization prevents either direct or indirect participation in the public tender for the airport concessions.

It is expected that the Invitation to Bid for these two airports will be issued in August of this year. The framework of the tender will be similar to the one adopted in 2012 for the concessions of the international airports in São Paulo, Campinas, and Brasília. Unlike the previous tender, however, only operators of airports that handle at least 35 million passengers a year will be allowed to bid. The expected aggregate amount of the investment is R$11.4 billion, of which R$6.6 billion will be allotted to Galeão and R$4.8 billion for Confins. 

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