Lima Airport Partners To Manage Jorge Chavez International Airport
Presently, Jorge Chavez International Airport serves 4.5 million passengers per year. Conservative estimates indicate that passenger volumes will more than double by 2010 and reach 16 million by 2020. The latest traffic figures indicate an approximately 11% growth in international traffic in 2000.
"We are ready to help the Peruvian government make Jorge Chavez Airport a world-class aviation center, an engine for regional economic growth, and a showcase for Peru's innovative privatization program," said Peter Henkel, Chairman of Lima Airport Partners.
Lima Airport Partners has developed a comprehensive master plan to improve levels of service in the near term and to create a long-term strategy to enhance revenues through airport commercial development and air cargo growth. During the first three and a half years of the concession, more than US$130 million dollars will be invested in new airport infrastructure, including upgrading the current terminal, constructing a new passenger concourse, expanding and adding new aircraft aprons and taxiways, reconfiguring the existing car parking structure, and creating a hotel and world-class retail center within the airport.
Over the 30-year concession period, Lima Airport Partners plans to finance and build a second runway and a new terminal complex, expand the commercial and retail strategy, and develop new air cargo facilities to support development of other export activities. The total investment in Lima's airport infrastructure is expected to exceed US$1.4 billion during the concession term.
Under the terms of the agreement, Lima Airport Partners will share revenues with the government and will reimburse the government for its costs in the privatization process. Additionally, overall employment at the airport will increase by up to 33%, and the majority of the 150 airport employees now working for the government will be retained.
"The privatization of the operations of the Lima Airport is a major step forward for Peru," according to Pedro-Pablo Kuczynski, President and CEO of The Latin America Enterprise Fund. "Not only will efficiency increase dramatically, but the government will receive very significant concession payments, totaling nearly $425 million over the coming 8 years. The Lima Airport points the way for other concessions, where Peru and its citizens will benefit and foreign investors will bring their expertise and financial resources. An example to be followed!"
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