The National Bank for Economic and Social Development (BNDES) in Brazil has announced that it has approved a BRL1.25 billion (US$322.7 million) loan to Fraport Brasil - Porto Alegre for the expansion, modernization and maintenance of the infrastructure of Porto Alegre Airport.

Fraport Brasil - Porto Alegre was awarded a 25-year concession contract to expand, modernize and maintain the airport infrastructure in the fourth round of the National Civil Aviation Agency (ANAC)'s airport concession auctions, launched in January 2016. The concessionaire fully assumed operations of Porto Alegre in January 2018.

The bank's support corresponds to more than 60% of the total investment of the concession, approximately BRL1.8 billion (US$464.7 million). The funds will cover payments to the construction contractor, purchasing equipment, developing and managing the project. 

Among the main planned infrastructure works are the expansion of the passenger terminal 1, with traffic projection of 9 million passengers per year by 2023; renovation of taxiways; improvements to drainage systems and construction of parking garages. The concessionaire also plans to extend the landing and takeoff runway from 2,280 meters to 3,200 meters, which will allow the airport to receive larger aircraft that operate long-haul flights and thus incease the number of international flights from Porto Alegre. 

The concession contract mandates that works must be completed by the end of October 2019, except for the extension of the runway, for which the deadline is December 2021. BNDES' financing has a term of 20 years.

Porto Alegre Airport is the 9th largest in Brazil and the largest in the southern region of the country (in terms of passengers transported). In 2017, more than 7.9 million passengers transited through the airport, with 7.5 million domestic passengers and just over 400,000 international passengers.

Fraport Brasil - Porto Alegre is a subsidiary of Fraport AG Frankfurt Airport Services Worldwide, an airport operator that controls Frankfurt Airport, Germany's largest airport, and operates in more than thirty other airports around the world.