Brazil auctions airports in promising start to privatizations
(Adds details of auction, policy context)
By Gabriela Mello
SAO PAULO, March 16 (Reuters) Brazil awarded three European groups on Thursday the rights to operate four airports, buy canada goose jacket drawing nearly double canada goose coats on sale the minimum bids at an auction that underscored investors appetite for canada goose factory sale a new wave of privatizations under President Michel Temer.
German airport operator Fraport AG, canada goose uk outlet French uk canada goose group Vinci SA and Zurich Airport bid a combined 1.46 canada goose uk black friday billion reais ($470 million) for buy canada goose jacket cheap the rights to run airports in Porto Alegre, Salvador, Fortaleza canada goose store and Florianopolis.
The companies committed to investing at least 6.61 billion reais in the airports and to paying canada goose the government an additional 2.26 billion reais in operating fees over the next 30 years.
The privatizations will help Temer government to narrow a budget deficit that topped 9 percent of cheap canada goose uk gross domestic product (GDP) last year and to spur the infrastructure investments that he is counting on to Canada Goose Online lift Brazil economy from its worst canada goose clearance recession in more than a Canada Goose Coats On Sale century.
have won back international credibility, canada goose clearance sale Temer said on Twitter, celebrating in the uk canada goose outlet airport auction.
Brazil has also promised auctions of offshore oil fields, public utilities, railroads and highways this year.
Fraport won the canada goose uk shop rights to operate the Fortaleza and Porto Alegre Canada Goose sale airports, with bids of 425 million reais and 291 million reais, respectively.
The company said cheap Canada Goose it https://www.canadagooseparks.com expected the operations to contribute 350 million euros ($376 million) Canada Goose Parka to the group earnings before interest, taxes, depreciation and amortization over the next five years.
Zurich won the operating license for the Florianopolis airport with a bid of 83 million reais, and Vinci took the concession for the airport in Salvador a tourist destination in Brazil northeast for Canada Goose online 661 million reais.
auction was a resounding canada goose black friday sale success, said Transportation Minister Mauricio Quintella, highlighting the private investment without subsidized financing from canada goose state development bank BNDES, which had played canada goose coats a key role in airport privatizations in 2013.
The government had played down the expectation of hefty premiums at the auction after about two thirds of the interested companies backed out of the auction, leaving just three to bid.
Brazilian toll road operator CCR SA, which is part of the group running Belo canadian goose jacket Horizonte international airport, and Argentina Corporacion America, which administers airports in Brasilia and Natal, both criticized the conditions for the concessions at Thursday auction.
Domestic air travel in Brazil fell 5.7 percent last year, the Canada Goose Jackets first drop since 2003, Canada Goose Outlet as the deep recession and increasingly expensive fuel imports battered the airline industry.