Brazil authorizes concession for Pampulha airport

Brazil’s federal government authorized Minas Gerais state to advance with awarding a concession for Pampulha airport, ending years of controversy. 

"The airport terminal was delegated by the federal government to the state government – hence the need to consent to the concession process. Minas Gerais has already carried out technical studies and public hearings regarding the concession," the infrastructure ministry said in a release. "Now, it is up to the Minas Gerais government to carry out the concession auction, followed by the signing of a contract with the winner, on the dates to be defined." 

The concession for Pampulha was in doubt for years, as the state government in 2005 decided to restrict flights at the airport to small aircraft, effectively excluding commercial flights. 

However, a few years ago the federal government authorized commercial flights at Pampulha, blocking various attempts of BH Airport, concessionaire of Tancredo Neves international airport, about 30km north of Pampulha, to have the decision overturned in the courts, arguing that authorization hurts demand at Tancredo Neves. Both airports serve Minas Gerais capital Belo Horizonte.

Shortly after the federal government authorization, the state government announced the publication of the notice for the airport concession auction.

The auction is expected to take place on October 5 and the state government will demand a minimum fee of 18mn reais (US$3.5mn). Estimated investment over the 30-year concession is 150mn reais, according to state infrastructure secretary Fernando Marcato, who was quoted by news website Diario do Comercio.