Just over eight years after having its concession auctioned for R$ 19 billion, with a premium of 294%, in November 2013, the Tom Jobim International Airport, Galeão, in Rio, will be returned to the Federal Government. 10th, to the National Civil Aviation Agency (Anac) by Changi, Singapore’s airport operator. RIOGaleão, a concessionaire controlled by Changi, cited the poor economic performance of Brazil since 2014 and the negative effects of the covid-19 pandemic on civil aviation when announcing the return.
Now, the federal government will hold an auction to select the new concession operator. The Minister of Infrastructure, Tarcísio de Freitas, informed that the new concession will be evaluated in conjunction with that of Santos Dumont, an airport located in the center of the state capital, still under the management of state-owned Infraero.
“We are going to evaluate the Galeão and Santos Dumont concession together. I am sure that this too, in some way, responds to a concern expressed by the productive sector and the government of Rio de Janeiro,” he said.
The forecast, according to the minister, is that the two terminals will be awarded in the second half of 2023 to the same operator, in an 8th round of airport bids.
The Santos Dumont concession – which was included in the 7th round of airport bids, scheduled for this year – provoked a dispute between authorities and representatives of Rio’s business community and the federal government.
Local authorities are opposed to the ministry’s concession model, for fear that the private operation in the smaller terminal will further empty the Galeão. Soon after the announcement of the return of the concession, the governor of Rio, Cláudio Castro (PL), took to social media to defend the “re-bidding” of the international terminal in a way “in line” with the Santos Dumont concession.
Historic
Since taking over the Galeão concession in 2014, Changi has invested R$2.6 billion to expand the airport’s capacity and improve its operation. To this end, it took out a bridge loan of R$1.1 billion with the National Bank for Economic and Social Development (BNDES) in 2014, replaced, at the end of 2017, by a long-term financing of R$1.6 billion.
The problems began when “Brazil suffered a deep economic recession from 2014 to early 2016”, followed by “weak economic growth” during the post-recession phase. During this period, total passenger traffic in the country fell by “about 7%”, according to the concessionaire.
“In 2020, when the airline sector had barely recovered to the level of 2013, the covid-19 pandemic caused a 90% drop in the number of flights in Brazil and further weakened the airport’s operating conditions,” says the note. from RIOGaleão.
From the success of the 2013 auction, to the “bitterness of the pessimists”, in the words of then-President Dilma Rousseff, Galeão’s problems also include Operation Car Wash. The winning consortium was led by Odebrecht Transport, operator of the construction company affected by the investigations. At the original dealership, Changi was a minority partner.
After the problems caused by Lava Jato, Odebrecht had to get rid of its stake in RIOGaleão and sold its stake to Changi itself at the end of 2017.
The information is from the newspaper. The State of São Paulo.
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