More Brazilian airport concession issues; first one nears termination
As Brazil’s airport concession programme nears its tenth birthday and the available airports decline in number, there are a number of problems relating to some of the earlier ones, including the very first – in Natal.
An amendment to the termination procedure there will result in an indemnification payment being made to the operator there, based on non-amortised capital expenditure investments. In other words – the operator is asking for its sunk costs to be reimbursed, or at least some of them.
Elsewhere, four other airports will have their concession terms ‘rebalanced’.
If the programme was in its early days this would be bad news indeed but with only two ‘big’ airports left to privatise – in Sao Paulo and Rio de Janeiro, Brazil can be satisfied it has ‘got away’ with what was always a risky exercise.
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