On December 1, 2016, the Brazilian National Civil Aviation Agency (ANAC) disclosed the RFP in connection with the privatization of the international airports of Florianópolis, Fortaleza, Porto Alegre, and Salvador (the "Airports"), which have been previously included in Brazil's Investment Partnership Plan (the "Plan").

Bidders must submit proposals on March 13, 2017, at the São Paulo Stock Exchange (BM&FBovespa). Below is a full schedule of the privatization. 

Foreign companies are allowed to bid, individually or jointly as part of a consortium. The bidding consortium must indicate the consortium member that will act as the Airport Operator, which must hold a minimum equity interest of 15 percent in the concession company.

Differently from the last airport privatizations, this time the government-owned airport operator INFRAERO will not have any equity participation in the concession companies.

Bidders may submit offers for all the four Airports; however, one bidder cannot be awarded with more than one airport within the same "region".  For this purpose, Florianopolis and Porto Alegre airports are in the "South region", while Fortaleza and Salvador airports are in the "Northeast region".

The concession terms will be of 25 years for Porto Alegre Airport, and 30 years for the other Airports.  All four concessions have their original terms renewable for additional five years.

The award criteria will be the highest amount offered for the "Initial Fixed Contribution" payable to the government, which includes (a) 25% of the minimum price set in the RFP, plus (b) 100% of the premium (if any) that is offered by the winning bidder.

The 25% minimum prices payable by the winning bidders will be as follows: R$ 53 million for the Florianópolis Airport, R$ 360 million for the Fortaleza Airport, R$ 31 million for the Porto Alegre Airport, and R$ 310 million for the Salvador Airport.

Therefore, the remaining 75% of the minimum price will be paid in annual installments along the life of the concessions, provided that the first installment will be due only as of the fifth year of the concession.

The future concessionaires will also pay an annual variable contribution corresponding to 5% of the gross revenues obtained in each airport.

The minimum prices were reduced by the Government due to the reallocation of some costs to the concessionaire, such as the cost related to the relocation of INFRAERO employees, who will no longer be associated with airports nor hold any equity participation in the Airports' new concession companies.

The airport tariffs will have their maximum values set out in the concession contract and will be adjusted annually for inflation, according to the Brazilian IPCA index, plus the application of factors of productivity and quality.

Soon after signing, the concession companies must implement actions to improve the operational standards through the "transition period", which include interventions to expand passenger terminals, aircraft yards and runways, among other measures.


Events Dates
RFP Disclosure December 1, 2016
Deadline for  submission of objections to the RFP March 3, 2017
Delivery of (i) preliminary statements, representation documents, guarantees; (ii) price bid; and (iii) qualification documents. March 13, 2017
Public session for opening the bid envelopes, announcement of the winners, and disclosure of qualification documents March 16, 2017
Publication of the minutes of the opening session April 13, 2017
Period for submission of objections to the winning bids April 25, 2017 through May 2, 2017
Publication of decisions on objections May 23, 2017
Ratification of the results and awarding May 30, 2017
Signing of the concession contracts July 28, 2017

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