INTERNATIONAL AIRPORT OF POUSO ALEGRE (IAPA)

A GREEN FIELD AIRPORT

I. WHY POUSO ALEGRE

. Pouso Alegre is the 29th city among the 100 best ones to invest in , according to “Exame”, one of the most important economical magazines in the country. In state, it is the second one, surpassed only by , the state capital. . Located in the middle of the four major consumer centers[1] of Brazil, Pouso Alegre is crossed by several federal and state roads, connecting it to the most important and developed cities in the three main states of Brazil. So, from a logistic point of view, its location could not be better. . It is also located, in the geographical center of the four more important international airports of the country: -GRU (200 km), Viracopos-VCP (200 km), Galeão-GIG (400 km) and BHZ/-CNF (420 km). . The resident population is about 150,000 inhabitants, but as a regional center, around 1,5 million persons are permanently attracted to the city due to its excellency in services, health and schools as well as its business development. . The industrial park is very diversified with many international companies in different sectors: pharmaceutical, foods, automotive parts, high-tech and others. . A dry port started up one year ago expanding its operation very fast, reducing lead time and costs.

[1] - São Paulo-SP, Ribeirão Preto-SP, -RJ, Belo Horizonte-MG.

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II. PRESENT SITUATION

. A very small airport (800m runway) attends only executive flights. . Considering all the favourable factors of Pouso Alegre, an authorization was got from the federal government to construct and explore, for 35 years, an international airport with a runway of 3,000m. . A company with expertise in that type of project (Engibrás) was contracted to make the preliminary studies, which were recently concluded showing the following main results:

 Area to be acquired - 3,500,000 m2 (5,000m x 700m)

 Runway - 3,000 m

 Initial investment - U$ 80 MM

 Total Investment - US$ 116 MM (see attachment SDE-457)

 Internal return rate - 9.5% (minimal expected)

. The lower cost, when compared to other bigger cities, to support all the services required by a HUB (catering, maintenance, hosting of crew people, cargo, etc) is an additional advantage of Pouso Alegre.

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III. NEXT STEPS

. A bid contest will be made to select a company (or companies) interested in project, construct and explore the new “green field” airport. . With an additional investment, the length of the runway could be easily increased to 3.800m allowing the landing of any type of airplane. . The municipality will be responsible for the airport road access, connecting it to the main road (BR 381 – Rodovia Fernão Dias). The exemption of some local taxes could be negotiated with the municipality. . In order to avoid real estate speculation, the coordinates of the airport area will be furnished only to the companies that demonstrate technical capacity to participate of the bid contest. . A complete study in Portuguese is available under request.

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