Regional aviation program may be more expensive than originally planned.06/02/2015
According to studies performed by the Federal Public Finance Court, the Government’s regional aviation program could prove to be more expensive than originally budgeted. The Government’s original plan was to invest R$ 7.3 billion (US$ 2.8 billion) in the refurbishment or construction of 270 regional airports, meaning an average investment of R$ 27 million in each terminal included in the program.
However, it seems that the initial estimates may have been fixed far below the reality of the situation. According to an audit concluded by the Court in December, the average amount of the investments made by the Ministry of Civil Aviation (SAC) in the first viability study lots that cover more than 100 airports, not including spending on the expropriation of property, was up to R$ 55 million per terminal – more than double the estimated average.
The main objective of the audit was to analyze the criteria by which the airports which will be benefitting from the program would be chosen, but the Court’s report also placed in check the ability to perform the necessary work based on the budget published in December 2012, when President Dilma Rousseff launched the program.