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Brazil may receive $12 bi for infrastructure in 2020

The infrastructure minister spoke after his visit to the US

Published in 26/09/2019 - 18:15

By Vladimir Platonow Rio de Janeiro

Brazil may receive over $12 billion in both domestic and international investments for infrastructure in 2020. The estimate was made by the Brazilian Minister of Infrastructure Tarcísio Freitas. He was in the US in the last few days, when he held business meetings with foreign executives, most of whom Americans and Canadians.

“We met with representatives of 68 funds, investment banks, pension funds, sovereign funds. Meetings added up to 21. In all, funds administer upwards of $2 trillion in assets. They’re looking at everything—airports, ports, roads, Brazilian companies, Eletrobras. Their appetite is huge,” Freitas said.

A sharp rise in the bulk of infrastructure investments is expected next year, he reported. “We’re closing out this year with $2,65 billion in investment contracts for auctions to lease ports, roads, railways, and airports. If we take into account the investments authorized for ports, this amount goes up to $7.23 billion in contracts signed this year. I’m convinced we can reach $12 billion in contracts for all segments, with both domestic and international [investors],” he pointed out.

Airports

Freitas also mentioned the airport concession program by Brazil’s national airport authority Infraero. Airports will be handed over to the private enterprise by 2022. Concessions are said to follow a strict schedule.

“The next step is to hold the auction of 22 airports in October next year, covering tree blocks: Norte 1, Centro, and Sul. After the auction is carried out, the seventh and last round, with over 19 airports, will start being structured, in three blocks. That’s when [the airports of] Congonhas and Santos Dumont [will be included]. The estimate is late 2021, early 2022. [By 2022,] 41 Infraero terminals [will have been conceded], i.e. all airports,” he said.

The minister said the runway in Congonhas will be revamped. He said the reform at Rio’s Santos Dumont airport was concluded in record time. In 28 days, the cover of the main runway was replaced, and the new, special asphalt drains rainwater away quickly, boosting operational safety as the runway becomes less slippery. 

Translation: Fabrício Ferreira Edition: Fábio Massalli / Augusto Queiroz

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