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Latin America Investment News on Viva Tropical

InterAirports of Honduras Demands 30 Years of Administration Rights at Palmerola Airport in Exchange for $100 Million in Investment Funds

Article Summary:

Honduras will have to decide quickly if it is going to accept a new timeframe requested by the private operator of the country’s commercial air terminals, InterAirports of Honduras. If granted the administration control, the company will then in turn invest $100 million in the Palmerola Airport within 10 years.

Photo Credit: El Heraldo

Original Article Text From El Heraldo via Google Translate :

IASA want Palmerola Grant for 30 Years

The contract for the construction of Palmerola commercial airport in Comayagua, generate a new controversy in Honduras. Among the controversial points of the negotiations highlights the concession period of the public good, since the private operator-InterAirports SA-want 30 years of administration.

The State of Honduras remains in effect granting the four-country air terminals Toncontín, Ramon Villeda Morales and Juan Manuel Galvez Golosón-for a period of 20 years, ie from 1 October 2000 to September 30, 2020 . However, the National Congress, led by Juan Hernandez, approved December 14, 2011 extending the contract until 2040, building on the theme of building Palmerola, which generated a series of accusations from certain sectors of society and that subtracted nine years for the expiration of the agreement.

A month later President Porfirio Lobo Sosa, vetoed the decree mentioned contained increasing from 30 to 60.30 dollars from the international departure fee, as well as 2.06 to $ 5 fee for domestic flights, leaving invalid that agreement and therefore the contract extension.

So far, the content of the new contract has not transpired, which met this day can be presented in the Council of Ministers for consideration, discussion and approval. The technical and economic conditions have been agreed by the negotiating teams of InterAirports and the Commission for the Promotion of Public-Private Partnerships (Coalianza), the leading five months talking to, greater than 15 days announced by President Lobo Sosa.

In negotiations held by the ombudsmen of InterAirports with Coalianza officials have addressed the issue of the duration of the contract for the construction, operation and maintenance of Palmerola. However, the Council of Ministers to decide whether to approve or not the 30 years requested by the private operator.

InterAirports executives believe that the profile of the proposed new commercial airport in Comayagua requires a longer time. They add that one factor to consider is the financial payback, since we are talking about 100 million dollars over 10 years. Generally, loans for the financing of such infrastructure projects have a minimum of 10 years.

Another aspect to analyze is the flow of passengers that can be mobilized by Palmerola and considering that the main source of income would be the collection of the international departure tax, the proceeds on that basis may be lower than estimates.

They claim that “the income generated by passenger traffic may be insufficient to repay the investment and that is one reason why we argue that the contract is for 30 years,” said an executive of the dealership. It is anticipated that Palmerola will be able to handle one million passengers a year, a similar amount of passenger traffic incoming and outgoing trade by the four terminals of Honduras. Against this background, the contract will be one of the most critical points in the Council of Ministers.

Link to Original Article:

From El Heraldo

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