Auction week in Brazil expected to bring in $1.75 bi

Brazil’s federal government is holding auctions of airports, ports, and a railway from April 7 through 9. Concessions granted in the so-called “Infra Week” are expected to add up to $1.75 billion in private investment. On the list are 22 airports, a railway, and five port terminals.

The country’s Infrastructure Ministry estimates the leasing and concession deals should generate upwards of 200 thousand direct and indirect jobs.

Calendar

The outcome of the auction of 22 airports on April 7 may represent over $1 billion in investments, said National Civil Aviation Secretary Ronei Glanzmann. The auction comprises long-term projects with concessions of up to 30 years.

The auction to be held on April 8 will be Fiol 1—the first section of the West–East Integration, between Ilhéus and Caetité, in Bahia state. The concession of the 537 km–long section should guarantee $580 million in investments—$281.4 million of which for the conclusion of works. The term for the concession will be 35 years.

To be decided on April 9 is the leasing of five port terminals: four in Porto de Taqui, in Maranhão; and one in Porto de Pelotas, in Rio Grande do Sul.

More than $105.5 million is estimated to stem from improvements at such terminals, which add up to more than 20 auctioned areas since 2019 and 69 permits fro the implementation of Private Use Terminals. In this time span, $1.75 billion has been covered by deals in the sector, which, despite the pandemic, grew 4.2 percent in 2020.

Concessions

In two years, the concession program has auctioned 41 assets, and totaled $7.73 billion in investment contracts and another $2.28 in contract awarding. In 2021, the president expects more than 50 enterprises to be granted, bringing in another $24.6 billion.

The government expects contracts in infrastructure projects to reach the end of 2022 adding up to $43.9 billion.