NO to Public Private Partnership for Airport

The government of El Salvador has changed his mind regarding a PPP for the expansion of the International Airport, prompting the withdrawal of technical support for the project from the US.

According to the Technical Secretary of the Presidency, Roberto Lorenzana, the argument to dismiss the PPP is based on the fact that following this business model would only bring the State rental income for 25 years, while the airport currently receives $40 million a year in net income.

"... One study found that if the expansion was financed in the form of public private partnership, the investor would have to put up $125 million in investment and would keep the administration of the terminal over the next 25 years."

"... 'Do the math ... 25x 40 would not be coming to us, it would not be beneficial for the state," he said. 'And that's why we decided to opt for a way of financing the expansion with equity' he said, referring to a surplus of $20 million from a securitization that was made in previous years. "

"... The US ambassador in El Salvador, Mari Carmen Aponte, confirmed last week that her country withdrew technical support while waiting for the CEPA to define the financing for the expansion of the terminal. 'Put it this way: our goals are no longer aligned to the objectives of CEPA.' "

Source: www.centralamericadata.com