Brazil has detailed requirements designed to attract large global airport operators to its planned concessions of the Belo Horizonte Confins International and Rio de Janeiro Galeao International airports.
Operators who bid on the deals must operate a portfolio of airports with more than 35 million passengers per year and invest at least 25% of the equity in the concession, according to an investor presentation from Invepar. The company owns 46% of the Sao Paulo Guarulhos International airport concession.
For reference, Guarulhos - the busiest airport in Latin America - only handled 32.8 million passengers in 2012.
The new requirements were created after the first round failed to attract the large airport operators Brazil sought. Invepar partnered with the Airports Company of South Africa for Guarulhos, while Triunfo Participacoes e Investimentos and UTC partnered with France's Egis for Viracopos-Campinas International and the Argentinian and Brazilian consortium of Corporacion America and Engevix Engenharia won Brasilia International.
The government had sought operators such as Fraport, Changi Airports International or Vantage Airport Group.
Invepar anticipates that the investment in Belo Horizonte will be about Brazilian reals (R$) 4.8 billion ($2.4 billion) and for Galeao about R$6.6 billion. This is higher than previous estimates from the government, which put investment in Belo Horizonte at about R$3.3 billion and Galeao at about R$4.8 billion this past January.
The auction for the concessions is scheduled for September.