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Airport Concession Projects: State of São Paulo holds Public Consultation; Federal Airports should be granted from the 2nd half of the year

May 4, 2020

Put Christian Fernandes Rosa and Beatriz Wehby – 03/05/2020

Since 2019, the Ministry of Infrastructure has been presenting details of the portfolio of concession projects among the four modes of transport: road, rail, aquarium and air. Currently, there are 51 projects underway and, even with the pandemic resulting from COVID-19, the Ministry guarantees the continuity of the works and preparations for all planned concessions – and a portfolio of projects to be implemented as soon as the crisis ends.

Regarding the airports owned by the Union, ANAC – National Civil Aviation Agency had published in February the opening of a public consultation for the process of the 6th round of concessions. There are 3 blocks containing airports in the North, Northeast, Central-West and South regions. Subsequently, in April, the report containing the contributions received in the public consultation and the drafts of the Bidding Notice, as well as the respective annexes, were made available. Now, approval by the Federal Court of Auditors is expected in the second half of the year, so that the bidding process can continue.

The Government of the State of São Paulo has also continued with its transportation sector concession projects: In April, it launched a public consultation for the concession of 22 regional airports, which foresees an investment of R$700 million between construction and operations by the private sector, over a 30-year concession period. These include cities such as São José do Rio Preto, Sorocaba, Bauru, Franca and Ribeirão Preto.

ARTESP – São Paulo State Transportation Agency will conduct the bidding process. Due to the pandemic, the public hearing will be held on May 12, at 3 pm, in a virtual environment so that the project can continue.

The public consultation phase for the documents that make up the contest is available on the ARTESP website, and contributions can be submitted between April 17 and May 21. The 22 airports will be divided into two lots in the international bidding process and, therefore, foreign companies that do not operate in the country will be able to participate.

According to information released by ARTESP, the two groups currently handle 2.4 million passengers per year, considering boarding and disembarking, with technical estimates indicating a growth of more than 230% in the movement of these airport units during the concession period, exceeding 8 million passengers/year at the end of the period.

It is worth noting that the winning consortia will be remunerated through tariff and commercial revenues, such as those resulting from the rental of hangars, restaurants and parking. The winners of each lot will be the competitors who submit the highest fixed grant offer.

The concession projects for the provision of public services for the operation, maintenance, exploration and expansion of the airport infrastructure of the 22 airports, as well as the partnerships promoted by the Federal Government, open space for new groups to operate in the transport sector.

The material related to the concession project for the airports in the current state network is available on the ARTESP website and the variety of partnership projects promoted by the Federal Government can be seen on the Ministry of Infrastructure website.

The Public Law & Compliance team at Mazzucco & Mello Advogados will monitor the progress of concessions in the transport sector and will be available to provide any clarifications.

 

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