Lima airport lines up three bidders for expansion

Tuesday, November 7, 2017

Lima Airport Partners (LAP), whose US$1.5bn expansion of Lima's Jorge Chávez Airport is a decade behind schedule, has lined up three bidders for the contract.

U.S. firm Bechtel, and Spanish Ferrovial and FCC pre-qualified to bid for the contract, to be awarded in the second half of 2018, LAP's CEO Juan José Salmón said. Ferrovial has formed a consortium with fellow Spanish firm Dragados, while FCC has formed a JV with Spain's Sacyr and U.S. firm Aecom, he said.

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The candidates were selected from 30 companies to bid for the five-year contract, according to Salmón.

FCC is a member of the consortium building line No. 2 of the Lima metro, while Bechtel built the concentrator plant at China Minmetals' US$8.3bn Las Bambas copper mine. Ferrovial was looking last year to acquire Odebrecht's stake in the US$7bn southern natural gas pipeline, since shelved.

"For the tender, we proposed to invite solely companies and groups with proven experience in airport project construction and a solid financial position," Salmón was cited by the state news agency. "We have received backing from the government so that this expansion can be a reality, and we're very optimistic about its progress."

LAP and the Peruvian government signed a contract addenda in July ensuring that surrounding land would be expropriated and handed over to build a second runway and terminal building. The project, which was held up by delays over land expropriation and permits, underscored the bureaucratic obstacles that many infrastructure projects face in Peru.

Lima's airport handled 18.8mn passengers last year and 9.7mn through the first half of 2017, according to LAP. The company has paid US$1.9bn to the Peruvian state and invested US$373mn in upgrades since it took over the concession in 2000. Today, the airport serves 35 airlines which handle 23 domestic and 46 international routes.

LAP is controlled by Fraport (70.01%), World Bank division IFC (19.99%) and Peruvian investment fund AC Capitales (10%).