El Salvador: Funds for Airport Expansion Undefined

The Government has not yet decided how it will attain the resources needed and how it will carry out the expansion of the San Salvador International Airport.

Thursday, October 23, 2014

According to authorities, there are 4 options for financing this expansion: a public-private partnership (PPP), a loan from multilateral banks, investment funds or lease to an airline building its own terminal.

Ricardo Cruz, a representative of Competitiveness Initiative, told Laprensagrafica.com that "... According to the study 'Value for money' PPP is a feasible format to finance the airport expansion. The Infrastructure Board agreed to support analysis of different options to pay for the expansion. "

Carmen Aida Lazo, coordinator of the infrastructure component, added that "... The government is still evaluating, it is a decision that must be studied hard ... what is the best method with which to develop the airport, whether it be a loan, PPP or something else."

More on this topic

International Tender: PPP for Cargo Terminal

September 2019

In El Salvador, the contract for the financing, design, construction and operation of the San Oscar Arnulfo Romero y Galdámez International Airport Cargo Terminal is tendered under the Public-Private Partnership format.

The project contemplates two phases of development: Phase 1 consists of financing, design, expansion, construction, equipment, improvement of maintenance and operation of the existing Cargo Terminal.

Financing Sought for Airport Expansion

May 2018

$19 million is needed for the expansion of the cargo terminal at the Monseñor Romero Airport in El Salvador, and companies interested in participating in the public-private partnership are being sought.

Authorities at the Ministry of Public Works and Fomilienio II, informed that one of the projects that will be developed under the PPP modality is the " ...Improvement of infrastructure, processes and equipment at the current AIESMOARG Cargo Terminal, to increase the volume of import and export cargo by approximately 40%, which will allow a greater flow of goods and services. The project contemplates the possibility of expansion and construction of a Cargo Terminal." 

NO to Public Private Partnership for Airport

October 2015

The government of El Salvador has changed his mind regarding a PPP for the expansion of the International Airport, prompting the withdrawal of technical support for the project from the US.

According to the Technical Secretary of the Presidency, Roberto Lorenzana, the argument to dismiss the PPP is based on the fact that following this business model would only bring the State rental income for 25 years, while the airport currently receives $40 million a year in net income.

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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