AIRLINK 78.39 Increased By ▲ 5.39 (7.38%)
BOP 5.34 Decreased By ▼ -0.01 (-0.19%)
CNERGY 4.33 Increased By ▲ 0.02 (0.46%)
DFML 30.87 Increased By ▲ 2.32 (8.13%)
DGKC 78.51 Increased By ▲ 4.22 (5.68%)
FCCL 20.58 Increased By ▲ 0.23 (1.13%)
FFBL 32.30 Increased By ▲ 1.40 (4.53%)
FFL 10.22 Increased By ▲ 0.16 (1.59%)
GGL 10.29 Decreased By ▼ -0.10 (-0.96%)
HBL 118.50 Increased By ▲ 2.53 (2.18%)
HUBC 135.10 Increased By ▲ 2.90 (2.19%)
HUMNL 6.87 Increased By ▲ 0.19 (2.84%)
KEL 4.17 Increased By ▲ 0.14 (3.47%)
KOSM 4.73 Increased By ▲ 0.13 (2.83%)
MLCF 38.67 Increased By ▲ 0.13 (0.34%)
OGDC 134.85 Increased By ▲ 1.00 (0.75%)
PAEL 23.40 Decreased By ▼ -0.43 (-1.8%)
PIAA 26.64 Decreased By ▼ -0.49 (-1.81%)
PIBTL 7.02 Increased By ▲ 0.26 (3.85%)
PPL 113.45 Increased By ▲ 0.65 (0.58%)
PRL 27.73 Decreased By ▼ -0.43 (-1.53%)
PTC 14.60 Decreased By ▼ -0.29 (-1.95%)
SEARL 56.50 Increased By ▲ 0.08 (0.14%)
SNGP 66.30 Increased By ▲ 0.50 (0.76%)
SSGC 10.94 Decreased By ▼ -0.07 (-0.64%)
TELE 9.15 Increased By ▲ 0.13 (1.44%)
TPLP 11.67 Decreased By ▼ -0.23 (-1.93%)
TRG 71.43 Increased By ▲ 2.33 (3.37%)
UNITY 24.51 Increased By ▲ 0.80 (3.37%)
WTL 1.33 No Change ▼ 0.00 (0%)
BR100 7,493 Increased By 58.6 (0.79%)
BR30 24,558 Increased By 338.4 (1.4%)
KSE100 72,052 Increased By 692.5 (0.97%)
KSE30 23,808 Increased By 241 (1.02%)

SAO PAULO: Brazil will sell operating rights to 22 airports, five ports and a railroad in a massive auction this week, seeking to raise $1.75 billion and soothe investors wary of recent volatility in Latin America’s biggest economy.

The three-day infrastructure concession auction, which kicks off Wednesday, has drawn interest from big international players including France’s Groupe ADP and Vinci, Spain’s Aena, Brazil’s own CCR and Brazilian-Argentine consortium Inframerica.

The question is how high such firms will bid at a time when the coronavirus pandemic has upended the transport and travel industries worldwide and as analysts warn Brazil faces twin health and political crises that are clouding its economic future.

Originally scheduled for October last year, the auctions were postponed because of Covid-19, which has claimed more than 330,000 lives in Brazil — the second-highest toll worldwide, after the United States.

It could be a risky bet holding the auctions now, at a time when the virus is claiming more lives in Brazil than anywhere else and President Jair Bolsonaro is facing a firestorm of criticism for his handling of the pandemic.

The far-right leader took to social messaging app Telegram Saturday to make a personal pitch for “#InfraWeek,” touting the “biggest airport auction in Brazilian history.”

Bolsonaro and Economy Minister Paulo Guedes are keen to soothe investors who are wary of Brazil over its soaring Covid-19 deaths — an average of nearly 2,700 per day over the past week — and the upheaval that is creating.

Up for re-election next year and facing pressure to get control over a pandemic he has long tried to minimize, Bolsonaro triggered market jitters last week by replacing his foreign, justice and defense ministers and naming new army, navy and air force commanders.

Bolsonaro campaigned in 2018 on a promise of large-scale privatizations and concessions of state-run companies and infrastructure to slash Brazil’s budget deficit and debt — which have only grown since, as the pandemic has pushed privatization plans to the back burner.

First up on the auction block Wednesday in Sao Paulo will be concessions for up to 30 years to operate 22 small and medium airports, including regional hubs such as Amazon rainforest city Manaus and tourist drawcard Foz do Iguacu.

The infrastructure ministry is targeting a total price tag of more than 6.1 billion reais ($1.1 billion).

Thursday’s auction will be for 35-year operating rights for the Fiol 1 rail line in the northeastern state of Bahia.

The government is seeking 3.3 billion reais, but could struggle to find bidders, according to Brazilian media reports.

On Friday, the ministry will auction leases on five port terminals in the northeastern state of Maranhao and southern state of Rio Grande do Sul, seeking a total price tag of 600 million reais.

Comments

Comments are closed.