26-Sep-2013 3:01 PM

Brazil lifts restrictions on previous winners in Rio and Belo Horizonte airport privatisations

Brazil's Government reportedly lifted the restrictions on previous airport privatisation winners in the upcoming concession grants at Rio de Janeiro Galeão International Airport and Belo Horizonte Tancredo Neves International Airport to boost competition, according to Chief of Staff of the Presidency Gleisi Hoffmann and as quoted by O Globo. The lifting of the restriction could result in one operator managing 85% of the country's international air traffic, should São Paulo Guarulhos International Airport operator Invepar choose to bid for and win the Galeão concession. On this possible eventuality, Ms Hoffman said regulatory measures will prevent the creation of monopolies which worsen airport management, noting "regulation is very strict". The lifting of the restriction follows previous bidders originally being prohibited from participating and then being limited to a 15% stake in a consortium bid for the two airports. Invepar had reportedly been lobbying to have the 15% restriction lifted. As previously reported by CAPA, the auction for the facilities was recently delayed from 31-Oct-2013 to 22-Nov-2013.

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