Puerto Rico’s Public-Private Partnership Authority and Ports Authority announced this week that two finalists have been selected for a public-private partnership to run the island’s Luiz Munoz Marin International Airport.
Consortiums Aerostar Airport Holdings and Grupo Aeropuertos Avance are the two finalists out of a group of 12 candidates that entered the bidding process last year.
Aerostar Airport Holdings is comprised of Aeroportuario del Sureste, a company that operates nine airports in southeast Mexico, and Highstar Capital, an investment fund specializing in transportation, energy and environmental services.
Grupo Aeropuertos Avance includes Ferrovial Aeropuertos, which operates six airports in the United Kingdom, including Heathrow Airport, and Macquarie Infrastructure & Real Assets, the world’s largest infrastructure investment fund.
“This transformative project can provide benefits not only to travelers, but also to airlines, the airport community, and our economy in general. The two short-listed proponents have the capabilities to achieve a turnaroud of the airport and show that airport P3s can be extremely positive,” said PPPA executive director David Álvarez.
The partnership will be established by a long-term contract under which the private consortium will make the necessary investment for the airport’s improvement.
According to the P3 project summary released by the PPPA in December, the next step is to select the preferred bidder, close the deal, and submit an application to the Federal Aviation Administration pilot program for approval.
The authority expects to select the preferred bidder in either June or July, said spokeswoman Ana Maria Gregorio.
The PPPA did not announce how much it expects to receive for the concession, but in the past officials have said they expected to raise $1 billion.
The Luis Munoz Marin International Airport is located in Carolina, Puerto Rico, three miles from the capital city of San Juan.
The Ports Authority’s credit rating from Moody’s Investors Service is Baa3. Standard & Poor’s assigns a BBB-minus.
