At the end of this month, the Brazilian Government will play out the second important round of airport privatizations.

Brazilian Civil Aviation Authority (ANAC) is scheduled to hold an auction to sell a 51% stake in the management of Antonio Carlos Jobim International Airport (Galeão) in Rio de Janeiro, and Tancredo Neves International Airport (Confins) in Belo Horizonte.

For Galeão, Brazil’s second biggest international gateway after Sao Paolo Guarulhos, ANAC intends to offer a concession period of 25 years with an optional five-year extension.

At present, Rio Galeão looks after 17.5m passengers a year (4.29m international) and this is projected to rise to 60m by 2038. The minimum bid for Galeão will be R$5.8bn ($2.6bn) with a variable contribution to the National Civil Aviation Fund (FNAC) of 5% of annual gross revenue.

The winner at Belo Horizonte – Confins, which handles 10.4m passengers a year (445,000 international), will enjoy a 30-year concession term (again, with a five-year option). Annual passenger volume is expected to rise to 43m by the end of the concession period.

After the success of the first round of privatizations, the Brazilian Government will look to raise money to support the non-privatized airports controlled by Infraero.

According to ANAC, the winners of the auction will be expected to make a total investment of not less than R$8.7bn ($3.9bn), during the concession period.  The winning consortium will have to invest at least R$ 5.2bn ($2.3bn) at Galeão, whereas Confins should attract an investment of around R$3.5bn ($1.5bn).