* Deal would privatize airport for 40 years
* Luiz Munoz Marin airport busiest in the Caribbean
SAN JUAN, July 11 (Reuters) – Two consortia looking to
expand holdings in the global aviation infrastructure submitted
final competing offers to privatize Puerto Rico’s main airport
as soon as the year’s end, according to the Caribbean island’s
government.
Grupo Aerpuertos Avance and Aerostar Airport Holdings LLC
delivered final offers on Tuesday to run the Caribbean’s busiest
airport for the next 40 years.
A winner to run Luis Munoz Marin International Airport
should be in place by Aug. 1. A decision would clear the way for
final Federal Aviation Administration approval this fall and
allow private managers to take control by year’s end.
The Caribbean nation is an unincorporated territory of the
United States.
If completed, it has been reported that the deal would
deliver $500 million or more to Puerto Rico’s Ports Authority.
Grupo Aerpuertos is headed by Ferrovial Aeropuertos
, which operates six airports in the United Kingdom,
including Heathrow, as well as an airport in Chile. Its partner,
investment fund Macquarie Infrastructure & Real Assets,
has stakes in eight airports in Europe, India and Australia.
Its rival, Aerostar, is made up of Aeroportuario del
Sureste, which operates nine airports in Mexico, and Highstar
Capital, which has made investments in Baltimore and London.
Both operators have records of increasing flights and
passengers and have close relationships with many of the world’s
largest airlines, Puerto Rico Public-Private Partnership
Authority Executive Director David lvarez said.
While the deal will provide fresh cash to the Ports
Authority, which is weighed down by nearly $1 billion in
long-term debt, officials say they also expect the deal to yield
increases in air routes, passengers and tourism for an island
that has been in recession for six years.
Alvarez declined to detail the offers, other than to say the
U.S. commonwealth expects a large upfront payment, an agreement
to share in future earnings, and commitments on capital
spending.
Puerto Rico’s international airport already has under 9
million passengers a year, but is not living up to its
potential, according to officials. Outbound boardings fluctuate
from 4 million to 5 million annually, or half its capacity, and
only half its facilities are in use.
Last year, Puerto Rico sold a 40-year concession for major
roadways PR22 and PR5 that gave the government a $1.136 billion
upfront fee, a commitment to invest $56.1 million in immediate
improvements, and another $600 million over the contract’s life.
