El Salvador: Airport Expansion is Directionless

Days after securitization was mentioned as an option to finance the expansion of the international airport, the government is now saying that it would be better to use pension funds.

Tuesday, June 9, 2015

Sending signals which only confuse and generate more uncertainty about such an important work as the extension of the main air terminal in the country, the Salvadoran government now says that using pension funds is the best option for financing the expansion.

Estrategiaynegocios.net reports that "... In an interview conducted yesterday by the state run Canal 10, the technical secretary, Roberto Lorenzana said the decision had already been taken by the president, Salvador Sanchez Ceren, and although he did not specify the mechanism by which pension savings would finance the work, he said that it will allow them to improve the profitability of the investment portfolio. "

"... 'It has already been decided by President (Sanchez) that this extension of the airport will have a mode in which funding will come primarily from [the state's] own resources, that is to say from pension funds," the official said. 'That's an important part, we intend to make pension funds profitable.'"

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El Salvador: Airport Expansion Urged

August 2015

The private sector is urging the government to define and execute financing once and for all for the expansion works of San Salvador's airport, which already operates at "200% of its capacity."

Avianca representatives say the current capacity of Monsignor Romero airport has already been far exceeded and the terminal needs to be expanded in order to improve passenger services and increase air operations.

El Salvador: How to Finance Airport Expansion

May 2015

International loans, public-private partnerships and now a securitizations are options that have emerged in recent years to fund the expansion of the capital's airport, which so far have remained on paper.

After raising the idea of a public-private partnership as the best alternative to finance the expansion of the international airport in San Salvador, the Autonomous Executive Port Commission (CEPA) is now indicating that this method "would take two years, which would be 'too long' for this terminal, whose capacity has been exceeded. "

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