Brazil is selling off dozens of airports

This article is over 4 months old Chief executive of airport authority says selling port of entry and 12 others for $3.77bn is ‘very good business’ Brazil is selling off dozens of airports Brazil…

Brazil is selling off dozens of airports

This article is over 4 months old

Chief executive of airport authority says selling port of entry and 12 others for $3.77bn is ‘very good business’

Brazil is selling off dozens of airports

Brazil is offloading its port of entry airports, highways and a hydroelectric dam for $3.77bn (£2.61bn), just months after the nation reeled from a public corruption scandal that exposed deep-rooted political graft.

The deal announced on Tuesday, the largest outside of the energy sector, reflects President Michel Temer’s effort to deregulate the national economy.

It represents a shift in the government’s policy from asset sales. Brazilian officials have traditionally sold infrastructure projects to domestic and foreign investors.

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In the last few months, Temer has sold public housing to Japan and a ferryboat that ferries Olympics and World Cup visitors between Rio de Janeiro and the city’s Copacabana beach.

“It’s a very good business, a bit difficult to get,” Alexandre Mendonça, the chief executive of the state-run airports authority Infraero, told Reuters by telephone.

Infraero operates 44 airports across the country, including the three primary airports in major cities Sao Paulo, Rio de Janeiro and Brasília.

Mendonça said selling the airport terminals in the country’s major cities was crucial to move forward with improvements and for a higher price. He added that Infraero sold its toll road concession in the city of Brasília – named the “royal flush” of the presidency, Brasília as its location and Lula da Silva as its first mayor.

Brasília city government officials declined to comment.

Infraero and shareholders announced the deal for the ports of Montevideo in Uruguay and Puerto Viejo in Colombia, as well as inked agreements for the Turri Cánes and Cernambi hydroelectric dams, as well as the airport terminals in Minas Gerais and Rio de Janeiro.

Mendonça said Infraero plans to continue diversifying its operations by selling land and real estate.

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