Through a public-private alliance, Fomilenio plans to make improvements to the cargo terminal at El Salvador's international airport, Monsenor Romero, and in a second phase, to invest $44 million in its expansion.
Fomilenio authorities detailed that they have completed the feasibility studies and determined that the first project to be carried out under the figure of Public - Private Alliance is the extension of the cargo terminal at the International Airport Monsignor Óscar Arnulfo Romero y Galdámez.
The new parking platform raises to 22 the number of aircraft that can be attended to simultaneously at the international airport in San Salvador.
Elsalvador.com reports that "...The work represents the first expansion project with a direct impact on customer service for passenger aircraft at San Salvador International Airport in the last 18 years and will be crucial in improving its operational capacity."
The Autonomous Executive Port Commission of El Salvador is putting out to tender the construction of 4 waiting rooms for passengers at the Monseñor Oscar Romero International Airport.
For the second time so far this year the Autonomous Executive Port Commission has launched a tender to expand the airport in Comalapa.
A tender has been launched for the design of an extension of the passenger terminal building, 4 aircraft parking spaces and 4 waiting rooms at the Comalapa International Airport.
Government Purchase El Salvador LP-21/2016
"Construction of four (4) waiting rooms for passengers at the International Airport of El Salvador, Monsignor Oscar Arnulfo Romero y Galdamez".
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.
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.
Although the master plan is ready, changes in the Autonomous Executive Port Commission and other factors have delayed, again, the modernization of the international airport in El Salvador.
Roberto Kriete, co-founder and member of the board of Avianca Holdings told Laprensagrafica.com that "... 'the airport is an issue that has a very large financial impact nationally and it is a topic that unfortunately when there are changes of government and even more so changes in leadership at the CEPA (the modernization process) there is a delay of at least six months while it is all reviewed ...There are obvious needs for the expansion of the airport terminal, and (it is obvious) that the process of modernization should be sped up.'"
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.
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.
The expansion and modernization of the International Airport in El Salvador will be funded through securities, which will be issued on 18 February.
The Autonomous Executive Port Commission of El Salvador (CEPA by its initials in Spanish) will issue securities worth $58.3 million, which will be complemented by a loan taken out with the BCIE in order to expand the El Salvador International Airport (AIES by its initials in Spanish), whose investment is around $70 million.
The Autonomous Executive Port Commission has announced that next January refurbishment of the International Airport of El Salvador will start.
This comes after having secured funds through a securitization and a loan from Central American Bank for Economic Integration.
"Some works have already started, such as the remodeling of the stairs in the passenger reception area, a passenger elevator and improved air conditioning in part of the airport.
The Goverment of El Salvador has decided that the expansion of the International Airport of El Salvador will be conducted via a public-private association.
The technical secretary of the presidency announced that they decided to use this mechanism due to the “large resources required by the expansion”.
“We plan to do this expansion via a public private partnership for a simple reason: the state lacks the resources.
The CABEI has approved loans for infrastructure work in ports and airports, and construction of prisons amounting to $92 million and $71 million respectively.
A statement from the Central American Bank for Economic Integration (CABEI) reads:
The Central American Bank for Economic Integration (CABEI) has approved funding for the Autonomous Executive Port Commission (CEPA in Spanish) of the Republic of El Salvador for an amount of up to U.S.
Without ruling out the idea of building their own airport terminal, the airline will wait to see how the modernization works initiated by the Executive Port Commission (CEPA) evolve.
Fidel Chavez Mena, vice president and legal representative of TACA, said that after meetings with representatives from CEPA, they have agreed to wait and see how the financing of the works evolves.
The Salvadoran Legislative Assembly has authorized the securitization of up to 20% of flows in order to finance improvements on the airport in El Salvador.
"Parliamentarians voted for the project, prepared by the Finance Committee, arguing that it is necessary to install air conditioners, modernize other areas, including the restrooms, in order to improve the quality of service to users", noted an article in Laprensagrafica.com
The government of El Salvador and AviancaTaca managers are working together to explore possibilities for the renewal and expansion of the International Airport of El Salvador.
Roberto Kriete, Chairman of the Board of AviancaTaca, said they are working together with representatives from the State and the Autonomous Executive Port Commission, to find a solution for the redevelopment of the airport terminal.