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Ministry unveils US$12.9bn financing plan for Mexico City airport


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September.05.2014

The new Mexico City airport project will cost a total of 169bn pesos (US$12.9bn) and will be financed through a mix of public and private funds, according to the transport and communications ministry (SCT).

While construction of the new terminal building, runways and control tower is expected to cost some 127bn pesos, the remaining 45bn pesos will be invested in design, water infrastructure and social works.

Some 20.5bn pesos will be spent on engineering, project management and architectural design, the latterawarded to world-renowned architect Norman Foster and Fernando Romero, Carlos Slim's son-in-law.

Water infrastructure works to reduce the risk of flooding will require 16.4bn pesos, while 4.7bn pesos will be channeled to social works.

The government intends to finance the project through 98bn pesos of public funds and 71bn pesos of private investment.

Private funding will include bank loans (of up to US$6bn) and bond issues secured by the state-owned airport owner Grupo Aeroportuario de la Ciudad de México (AICM).

The initial phase of the project will be financed with revenues from the existing airport (currently US$634mn/y), while later phases will likely be funded by bond issues, with maturities of up to 30 years, said the project's finance director Federico Patiño.

The government's investment will be recuperated within 20 years, said Patiño.

Article Credit: Bnamericas

Updated 5 Years ago
 

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Tags:     Mexico City Airport     SCT     Romero     Carlos Slim     AICM

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