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Doubts on privatizing Brazil airports

Report: Brazil bureaucracy has investors wary about buying in to airports
Brazil airportEnlarge
(VANDERLEI ALMEIDA/AFP/Getty Images)

Investors are expressing doubts about Brazil's recent announcement that privatizing airports will help cope with the surge in air traffic during the 2014 soccer World Cup, Reuters reports. “Regulatory uncertainty, stretched financial resources, and caution over the government's heavy hand in public works projects have entrepreneurs wary about airports,” the wire service reported. Already straining under a growing passenger load, Brazil’s airports are expected to see a surge of as many as 1 million passengers during the World Cup, whose games will take place in a dozen cities across the country. Brazilian officials announced last week that private companies—once allowed only to build terminals which were then managed by a government authority—will be given the opportunity to manage the facilities in several key cities. It remains to be seen whether any of companies will want to apply for the job.

http://www.globalpost.com/dispatches/globalpost-blogs/bric-yard/doubts-privatizing-brazil-airports