Indians intend to compete alone for license for Brazilian airports

02/01/2012 - 07h30

The Indian group GMR will compete in the privatization of airports in Brazil, scheduled for February 6. Unlike other foreign groups, which are partnering with developers and national groups, the Indians intend to go it alone in the contest for one of the three airports to be auctioned: Brasilia, Campinas and Guarulhos. "It will be the first time that we will enter into an airport project alone.

But since Brazil is only selling 51%, we are going it alone in order to have the majority interest," said the president of the company GM Rao in a recent conversation with journalists in Asia.

Through the privatization model designed by the government, Infraero, the agency that manages the airports, will keep a stake of up to 49% in each airport.

One of the largest business groups in India, GMR operates in infrastructure projects, with investments in highways, energy and airports. The company leads a consortium that manages airports in Deli and Hyderabad in India, and in Istanbul in Turkey. "We are not a builder or developer.

We develop projects and are the only company in the world with the ability to build and operate airports from A to Z. We do everything: IT systems for airport operations, facility management, duty free shops, food and drink," said Rao.

The concession notice states that at least one of the consortium members has experience in the operation of airports with at least 5 million passengers a year. The requirement favors foreign groups.

"The requirement is technical and positive in consideration that these are three pretty busy airports," says the lawyer Letícia Queiroz de Andrade, of the firm Siqueira Castro Advogados. "The previous requirement, published in the study phase, was related to experience with infrastructure projects, which favored the selection of companies without experience in the area."

The company is in the process of acquisition of the shares that Andrade and Camargo hold, separately, in airports in Equador, Costa Rica and Curaçao. The traffic of the three airports combined exceeds 10 million passengers. The conclusion of the deal depends on the approval at the shareholders' meeting of CCR.

However, even if it is approved, CCR must also be associated with a foreign partner, possibly Flughafen Zürich, partner of Camargo Correia in Latin America and the Caribbean.

The German airport operator Fraport, partner of GMR in Deli, has already announced its intention to compete in the auctions in partnership with EcoRodovias.

Another foreign company that has confirmed its participation in the auction is Aena Aeropuertos Internacional of Spain, which will enter the competition with OHL, also from Spain, that in Brazilian manages the federal highways Regis Bittencourt and Fernão Dias, among others. Through its adviser, Aena confirmed that it intends to make a bid for the three airports.

The Argentine Corporación América should also enter the competition, in a consortium with the Engevix Ðconcessionários Group from the São Gonçalo do Amarante airport in Greater Natal. The French Airport de Paris is also studying the Brazilian market.

Among the Brazilians, Odebrecht, Triunfo, Queiroz Galvão and Carioca Engenharia are all studying the solicitations in order to present proposals.

The executive of one company that is evaluating whether to enter the competition says that despite the apparent general interest, the level of return expected on these investments could scare off investors. The rate of return on the investments is estimated at 6.47% for the airports at Guarulhos and Brasília, and 8% for Viracopos.