Lima Airport agrees on $450 million contract for airside development

Lima Airport Partners (LAP) has signed a $450 million financing agreement for its airside development programme at Jorge Chávez International Airport in Lima, Peru.

Four international banks – KfW IPEX-Bank, the Bank of Nova Scotia, Sumitomo Mitsui Banking Corporation (SMBC) and Banco Bilbao Vizcaya Argentaria – are providing the loan.

LAP’s airside development is strategically important, comprising of a new 65m-high air traffic control tower, a new second runway with a length of 3,480m, 10km of taxiways, a 250 hectare advanced mid-field apron area for increased aircraft parking capacity and new operational facilities for fire and rescue services, plus beacons and navigation aids, surveillance systems and other systems.

Construction of the ATC tower and airfield buildings began in July 2020 and is scheduled to be completed late in 2021. In the coming weeks, construction will start on the new runway which is scheduled to go into operation by the end of 2022.

Dr. Matthias Zieschang, Fraport AG’s Chief Financial Officer, explained the importance of the financing: “This excellent transaction is of paramount significance for the development of Lima Airport. Secured in a very challenging environment, this financing agreement sends out a strong and positive signal about Lima Airport Partners and the entire Fraport Group. Furthermore, the transaction underscores the strong interest and demand from capital markets for financing well-managed airports that have a long-term and positive perspective – such as Lima Airport Partners with its major South American hub airport.”