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Renovated airport cargo terminal to generate $62.3 million in foreign investment

More opportunities for economic development and a better investment climate in El Salvador: these were the main objectives of the signing of the first Public Private Partnership (PPP) for the development of the project to expand and modernize the cargo terminal of the International Airport of El Salvador “San Óscar Arnulfo Romero”.

The Autonomous Port Commission (CEPA) and Adimex El Salvador formalized the agreement that seeks to increase efficiency in the handling of import and export cargo, in order to position El Salvador as an aeronautical and logistics hub in the region.

The project is part of the advances in the execution of FOMILENIO II and is contemplated as a tool under the agreement between the Millennium Challenge Corporation (MCC) and the Government of El Salvador.

“This public-private partnership is an economic instrument that for more than 8 years was wasted (…) This comes to invigorate the economy, to give efficiency to the services and to promote foreign investment in the country”, said Federico Anliker, president of CEPA.

According to the president of the autonomous corporation, this project will allow a foreign investment of at least $62.3 million, which translates into more and better jobs, development of the communities surrounding the terminal and income for the State to invest in development works.

For his part, Peter Fleming, executive president of Adimex El Salvador, emphasized that this agreement was developed in a transparent manner and endowed with professionalism and technicality, which ensures that it will be a success for the country.

“This is a historic day for El Salvador. We will invest in improvements, generate the administration and operation of the Cargo Terminal, provide efficiency and equip it with the latest technology to bring it in line with the new requirements of the industry,” explained Fleming.

The executive added that Alutech is the company that won the PPP bid, however, in order to sign the contract it had to create a special purpose company, which the concessionaire called Adimex El Salvador.

The execution of the partnership is defined in two phases: the first consists of the financing, design, expansion, construction, equipment, improvement of maintenance and operation of the existing Cargo Terminal, with a budget of $13.3 million, for a term of up to 15 years.

In the second part, the entities involved will work on the design, construction, equipment, maintenance and operation of a new infrastructure, where $49 million will be invested over 20 years.

“The modernization of the Cargo Terminal is integrated into the Economic Take-Off Plan and is part of the strong commitment to make El Salvador a competitive investment destination,” added Anliker.

The duration of the contract will be up to a maximum of 35 years, and CEPA and the Civil Aviation Authority will be responsible for ensuring compliance.