CEPA finances will only allow them to invest $21.8 million that is considered critical to maintaining operations in 2009.
The Executive Autonomous Port Commission (CEPA) of El Salvador has committed its finances to the payment of the loan from the Japanese JBIC Bank for the construction of La Unión Port, leaving few resources for other investments. This year, the entity will only make certain investments considered "critical" so that the normal operation of Acajutla Port and the International Airport of El Salvador will not be affected.
While the government can not recover the investment made in Union Port, resources for the expansion of the airport cannot be counted on.
El Salvador publishes in its website: " CEPA has on a master expansion plan, which was presented at the end of 2007 by Airports of Paris, that contemplates the future infrastructure development capacity of the airfield in various phases at a cost of more than $700 million.
The work was christened with the name "The La Union Port of Central America" and was inaugurated officially, put the approval of concession project in the hand of the Assembly.
El Salvador.com reports: "The decree project established a public - private model for the administration and commercial development of the megastructure, with will the international operator will provide 100% in staring capital in order to set up the mixed situation in the bidding process.
Months will go by before the concession for its operation is granted. President Saca hopes to send the concession project to Congress by January 18.
There is still no political consensus for the concession or for the shareholder participation that the State should have in the company that will manage the Port.
According to reports from elsalvador.com, the president of the Autonomous Executive Port Commission (CEPA) Albino Roman, said "to be discussing the percentage that the State should have is a lack of vision." He added that "a world class operator is only going to invest if the business is profitable, hence a 51-49% distribution of the shares in favor of the State is not profitable for the investor. With that proportion we will not even get 10% IRR (internal return rate), when Fomilenio is asking for 14%
The project presented by the Government to the Legislative Assembly proposed the concession of both the La Union and the Acajutla ports to one operator.
CEPA president, Albino Román, said that this is the most appropriate way because it is attractive to big companies and will permit better development of the terminal and will generate income for the country, both from the operation of the port as well as from taxes.
The Executive Commission on Autonomous Ports in El Salvador says it will upgrade the Ilopango Airport, with work to start next June.
The commission will convert the Port of Ilopango to make it a location for internal commercial flights and for Central American destinations, said its president, Albino Román.
He said the property will be divided between the port authority, the Air Force, and the Civil Aviation Authority.
El Salvador will earn US$8 million a year over the next 25 years from a concession to operate the port of La Unión, predicted Albino Román, president of the Autonomous Port Authority (CEPA).
Román said the projection was based on the minimum forecast for the volume of cargo. The 178,000 square-meter cargo terminal will have a 350,000 TEU (20ft equivalent) container handling capacity.
Construction of El Salvador's new port, La Unión is now in its final stages, following the investment of US$96.3 million, the Executive Port Commission (CEPA) reported.
Albino Román, the CEPA president, said that docks for passenger, cargo and multi-purpose traffic have now been concluded, providing 820 meters of moorings. "Whichever company wins the operating concession will have to invest a lot on equipment," he added.
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