Called by the government “Infra Week”, the auction week has the potential to guarantee, according to the Ministry of Infrastructure, more than R $ 10 billion in investments in Brazil.
The first auction of the week will be the concession of 22 airports, scheduled for Wednesday (7), starting at 10 am, at the B3 headquarters, in São Paulo. On Thursday (8), it will be the turn of the auction of West-East Integration Railway (Fiol). On Friday (9), 5 port terminals will be offered in Maranhão and Rio Grande do Sul.
The Ministry of Infrastructure expects to make more than 50 concessions in the sector in 2021, considering only the privatizations of airports, highways, railways and port terminals. The auction of BR-153/080/414 / GO / TO is already scheduled for April 29, with a forecast of another R $ 8 billion in investments.
The forecast is to auction a total of 129 assets in 2021, considering all federal projects of the federal privatization program, which includes the privatization of 9 state companies this year. According to the Investment Partnership Program (PPI), considering only the auctions already scheduled, R $ 59 billion in investments are expected.
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See details for this week’s auctions below:
The 22 airports at Wednesday’s auction were divided into three blocks:
- Southern Block (9 airports): Curitiba (PR), Foz do Iguaçu (PR), Navegantes (SC), Londrina (PR), Joinville (SC), Bacacheri (PR), Pelotas (RS), Uruguaiana (RS) and Bagé (RS);
- North Block (7 airports): Manaus (AM), Porto Velho (RO), Rio Branco (AC), Cruzeiro do Sul (AC), Tabatinga (AM), Tefé (AM) and Boa Vista (RR);
- Central Block (6 airports): Goiânia (GO), São Luís (MA), Teresina (PI), Palmas (TO), Petrolina (PE) and Imperatriz (MA).
Together, these airports represent 11% of total passenger traffic, according to the National Civil Aviation Agency (Anac).
O total investment in the three blocks reaches R $ 6.1 billion, of which R $ 2.8 billion in the South Block, R $ 1.8 billion in the Central Block, and R $ 1.4 billion in the North Block.
The winner of each block will have to manage all the airports that are in the lot. By the rules of the public notice, the winner will be the one who offers the highest premium (surplus value) over the minimum price of each block.
The minimum bid for each block’s initial contribution will be minimum values from:
- R $ 130.2 million for the Southern Block;
- R $ 47.8 million for the Northern Block;
- R $ 8.1 million for the Central Block.
This amount will be paid immediately after the auction, plus the premium offered by the winner. In addition to the initial payment, the consortium that concludes the block will have to pay the government a percentage of the revenue obtained from the fifth year of the contract, until the end of the contract. The concession period will be 30 years.
This will be the 6th round of concessions in the sector. Currently, 67% of all national traffic is already granted to the private sector. The government expects to carry out the relicitation of the São Gonçalo do Amarante airport in Natal (RN) in December. The auction for the 7th round is scheduled for 2022, which includes Santos Dumont (RJ) and Congonhas (SP).
West-East Integration Railway
On Thursday (8), the auction for the concession of the West-East Integration Railway (Fiol) takes place on the stretch that goes from Ilhéus (BA) to Caetité (BA). The concession period will be 35 years.
According to the government, the concession of the 537 km stretch will guarantee R $ 3.3 billion in investments, being R $ 1.6 billion for the conclusion of the works.
According to the National Land Transport Agency (ANTT), the auction will win who offers the highest fixed grant amount, whose minimum value is R $ 32.7 million – money that will be passed on to the Union.
This is the initial stretch of Fiol, designed to assist the flow of iron ore production from the interior of Bahia through the port that will be built in Ilhéus.
The project foresees in the future the implementation of two other stretches: between Caetité (BA) and Barreiras (BA), and from Barreiras (BA) to Figueirópolis (TO), when, in the future, it will interconnect the port of Ilhéus to another railroad: a North South.
On Friday (9), the auction for the lease of the following port terminals will be held:
- 4 at the Port of Itaqui / MA (IQI03, IQI11, IQI12 and IQI13);
- 1 at the Port of Pelotas / RS (PEL01).
The four areas in the port of Maranhão are dedicated to the storage of liquid bulk. In total, the terminals total more than 120 thousand m².
The terminal at the port of Pelotas (RS) is dedicated to cargo in general, in particular wood logs, contributing to the pulp production logistics chain, and has an area of around 23 thousand m².
The government predicts more than R $ 600 million in investments improvements in these terminals. The winner will be the one who offers the highest grant value for the 20-year period of exploration of the area.
Despite economic uncertainties amid a scenario of worsening of the coronavirus pandemic, the government predicts that the auctions will attract the interest of national and international investors.
In a note, the national secretary of Civil Aviation, Ronei Glanzmann, said that there is “a lot of interest from the American, Asian and European market in the domestic aviation market, which already shows a reheat.”
The risk rating agency S&P Global Ratings assessed on March 31 that this round of auctions should not count on the massive participation of foreign investors, “who are still recovering from the severe economic effect of the pandemic”. But he stressed that “there is sufficient investor appetite for Brazilian infrastructure assets, given the country’s still considerable infrastructure deficit, ample liquidity and Brazil’s favorable regulatory framework.”
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