SAO PAULO Feb 8 Brazil may offer to protect
bidders for airports in a March auction from sudden currency
moves, local newspaper Valor Econômico said on Wednesday,
underscoring efforts to court foreign investment in Brazil's
According to the report, operators would be allowed to
deduct the Brazilian currency's impact on their foreign debt,
net of an index tracking inflation, country risk and other
measures, from payments made to a government fund.
Current law requires airport operators to transfer 5 percent
of gross revenue to the so-called FNAC fund that finances
investments in state-run airports.
Under the proposal, that payment could increase to as much
as 10 percent of gross revenue if oscillations in the index
offset the effect of foreign exchange moves, Valor said, citing
Minister Wellington Moreira Franco.
A 10-day public comment period will start by the end of the
week, Valor said.
Media representatives for the government were not
immediately available to comment on the report.
Investors eyeing long-term infrastructure assets in Brazil
have long demanded the government offer some protection from
moves in the country's volatile currency, the real
Brazil will auction off operating licenses for airports in
the cities of Porto Alegre, Salvador, Florianópolis and
Fortaleza on March 16 as part of a wave of privatizations meant
to help balance fiscal accounts and tackle transportation
(Writing by Bruno Federowski; Editing by Lisa Von Ahn)