São Paulo Work Halted

A FEDERAL Court Judge in Brazil has ordered work on São Paulo Guarulhos Airport’s new terminal to be stopped.  He said that the state airport authority Infraero had not followed the correct procedures when it awarded the contract to Delta Constructions.  There was no bidding process and Judge Louise Vilela Filgueiras Borer said that this set a “dangerous precedent” for all public works in Brazil.  She added that the urgency of the work should not mean that regulations could be ignored.
Infraero is investing $700 million in the project to increase the airport’s capacity to 52.7mppa by 2014, in readiness for Brazil to host the 2014 FIFA World Cup and the 2016 Olympic Games.  The company has said it will appeal the ruling, and if successful this should allow work to resume.  Previously in April 2011, the government-backed Institute for Applied Economic Research issued a warning that the majority of the nation’s airports would not be upgraded in time for the World Cup.