Brazil to form public-private consortia to revamp airports for World Cup
Brazil plans to form public-private consortia to revamp three airports as part of a broader effort to speed preparations for the 2014 FIFA World Cup (Reuters, 31-May-2011). The proposed public-private partnerships will build and operate new terminals at the Viacopos and Guarulhos airports in Sao Paulo and Brasilia. The state airport authority Infraera will have a stake of up to 49% and private companies will take the remaining share. Terms for the bidding process should be ready by Dec-2011. In Apr-2011, the Brazilian government announced it would grant private companies concessions to build and operate five major passenger terminals. This recent agreement is striking a middle ground in the government’s efforts to reconcile its interest in big government with its need for private capital. The World Cup, hosted by 12 Brazilian cities, and the Olympic Games are driving billions of dollars’ worth of infrastructure upgrades as Brazil prepares to showcase its economic rise.