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 funds raised will be used to complete construction of waiting rooms and a food area and start works on four aircraft platforms and the parking area.
Pension operators were the main buyers of the securities placed by Hencorp Exchange on October 19 in the local market, as part of the total emission worth $78 million approved in 2012 to finance the expansion of the international airport.
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.
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.
Changes in Avianca flight paths added 600,000 passengers per year to the current movements, forcing development of a plan for emergency works.
The increase in passenger arrivals is due to the hub belonging to Avianca. This has motivated the Comisión Ejecutiva Portuaria Autónoma (CEPA) to speed up the work being carried out at the International Airport El Salvador (AIES) in order to be able to attend to the new passengers.
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.
The government of El Salvador has welcomed an announcement by the President of the airline of their intention to build its own terminal at Comalapa.
The Technical Secretary of the Presidency, Alexander Segovia, in light of statements by AviancaTaca’s CEO Roberto Kriete said, "A few weeks ago, the president of TACA approached us. We have assembled a working group. They are interested in building a terminal themselves, and we are very interested. "
Roberto Kriete has announced that that the renovation of the El Salvador International Airport, one way or another, will be carried out within a maximum period of three years.
The chairman of the board of AviancaTaca told Laprensagrafica.com that Comalapa airport needs not only improvements, but a complete update according to a master plan designed by Aéroports de Paris.