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Brazilian Government's Economic Team to Privatize Congonhas Airport to Meet Fiscal Target

08/17/2017 - 11h17

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JULIO WIZIACK
MARIANA CARNEIRO
FROM BRASÍLIA

Brazil's economic team decided to privatize the Congonhas airport in São Paulo to help the government's coffers next year and try to meet the proposed fiscal target, which includes a deficit of R$ 159 billion (US$ 49.60 billion). The concession could yield some R$ 4 billion (US$ 1.25 billion).

The decision displeased the country's Civil Aviation Secretary (SAC), which believes that, without Congonhas, it is best to close Infraero, the Brazilian Airport Infrastructure Company, and sell all the country's airports.

If the state-run company were privatized, the country would make R$ 35 billion (US$ 11 billion) with the concessions and taxes collected.

"We hope to change the decision," Civil Aviation secretary Dario Rais Lopes told Folha. "Privatizing Congonhas alone represents a danger to Infraero, the services performed by the network and, as a consequence, mobility as a whole."

Congonhas is the second biggest airport in the country in number of passengers and yields the biggest profit to Infraero.

Lopes also says that the privatization only makes sense if it is intended to improve services provided to passengers. "Privatization should not be carried out just to make money."

CONCESSIONS

The sale of Congonhas airport is part of a set of concessions recently added to the government's plan - altogether the concessions are likely to generate R$ 20 billion (US$ 6.25 billion) for the Brazilian government in 2018.

In addition to the airports, the government is also analyzing the possibility of privatizing railroads that were not in the plan, as well as the branch of electronic bets of the federal lottery, which are likely to produce R$ 6 billion (US$ 1.9 billion) in concessions and R$ 4 billion in taxes (US$ 1.25 billion).

Translated by THOMAS MUELLO

Read the article in the original language

Renato S. Cerqueira/Futura Press/Folhapress
Brazil's economic team decided to privatize the Congonhas airport to help the government's coffers next year
Brazil's economic team decided to privatize the Congonhas airport to help the government's coffers next year

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