Business

A bad omen for Brazilian government concessions?

Several notable concessions are now being returned to public authorities, having proven unprofitable – a product of exaggerated expectations during Brazil’s boom years

Rio's Galeão airport was handed back to public authorities this year, one of many 'failed' concessions in Brazil. Photo: Maarten Zeehandelaar / Shutterstock.com
Rio’s Galeão airport was handed back to public authorities this year, one of many ‘failed’ concessions in Brazil. Photo: Maarten Zeehandelaar / Shutterstock.com

The decision of the Singaporean Changi Airport Group to return control over Rio de Janeiro’s Galeão International Airport to the federal government in early February took many by surprise. The abandonment of a concession this size, with only a third of its term gone and another 17 years to go, could represent a bad sign for international investors. Yet, the episode shines a light on the curious wave of re-bidding on concessions in Brazil over the last couple of years. 

In total, there are nine concessions that are currently facing the lengthy process of amicable return – a solution...

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