Sao Paulo state to privatise airports

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DAESP, the state-owned Sao Paulo state airport operator, is preparing to privatise ten of its 31 airports.

"DAESP is evaluating the creation of public private partnerships [PPP] to manage the ten most important airports in its network," says the operator. The airports include Presidente Prudente, Riberao Preto, Bauru, Marilia, Sao Jose de Rio Preto and Aracatuba, as well as four business aviation airports in the Sao Paulo city metropolitan area.

The tender will be published "by November", says a source. "The growth of traffic in these airports has been well above our expectations, and our budget to maintain and update those infrastructures has [grown] fivefold from R20 million [$10 million] to R100 million," they say. "We now need private investment to sustain their growth."

However, only Riberao Preto has more than one million passengers annually of all of the airports.

DAESP is Brazil's second largest airport operator, after Infraero, which is controlled by the federal government. Infraero closed concessions of three airports - Sao Paulo Guarulhos, Campinas and Brasilia - this year but the second package, which would include international airports in Rio de Janeiro and Belo Horizonte, has been delayed as the government is now more inclined to promote a PPP model.