Summary of Proposed Investment
Project Number
9967
Company Name
AERIS HOLDING COSTA RICA SA
Date SPI Disclosed
Oct 19, 2000
Country
Costa Rica
Industry
Infrastructure
Projected Board Date
Nov 21, 2000
Status
Active
Sector
Other Support Activities for Transportation (Grain Terminals, Cargo Terminals, Airport Operations)
Department
Regional Industry INF LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Dec 22, 2000
Signed : Dec 29, 2000
Invested : Oct 31, 2001
Project Description
The project involves the expansion and development of airside, terminal and landside facilities as contemplated in a 20-year management contract awarded by the Government of Costa Rica to Gestión Aeroportuaria AGI de Costa Rica, S.A. The airport''s control tower and fuel facilities are outside the purview of the Management Contract. The airport will be operated by the Grupo de Aeropuertos Internacional AGI, Costa Rica S.R.L, which is 100% owned by Airport Group International, Inc. (AGI). AGI is one of the largest and oldest private airport operators and developers in the world with more than 70 years of experience. The project cost of US$161 million covers investments to be made in the airport within the first three years, including refurbishment of the main runway, the construction of a new taxiway, and the rehabilitation and expansion of the passenger terminal.
Poor infrastructure is a recognized constraint on the further expansion of Costa Rica''s so far successful economic diversification under which high tech exports have more than offset declines in coffee and banana receipts. This has led to a trade surplus and spurred growth to above 5% in recent years. The tourism sector is one of the most important industries in Costa Rica as the sector earns almost US$1 billion in foreign currency and transportation is considered a bottleneck for further development of both tourism and industry. The existing airport facilities are reaching capacity constraints due to the growth in demand. This project will provide the large capital expenditures required to upgrade these facilities.
As one of the first privatizations in the country, the project will have a significant demonstration effect. IFC''s participation in the project is expected to raise investors'' confidence in this and other financial investments in the country. Due to the complex nature of the project structure, IFC will play an important role in bringing comfort to international investors. IFC expects to raise a significant amount of the required financing through syndication of long-term debt from commercial banks unwilling to invest in the project independently.
IFC will also ensure that the project is implemented in an environmentally sound manner, and significant environmental improvements are expected to arise from the project.
Poor infrastructure is a recognized constraint on the further expansion of Costa Rica''s so far successful economic diversification under which high tech exports have more than offset declines in coffee and banana receipts. This has led to a trade surplus and spurred growth to above 5% in recent years. The tourism sector is one of the most important industries in Costa Rica as the sector earns almost US$1 billion in foreign currency and transportation is considered a bottleneck for further development of both tourism and industry. The existing airport facilities are reaching capacity constraints due to the growth in demand. This project will provide the large capital expenditures required to upgrade these facilities.
As one of the first privatizations in the country, the project will have a significant demonstration effect. IFC''s participation in the project is expected to raise investors'' confidence in this and other financial investments in the country. Due to the complex nature of the project structure, IFC will play an important role in bringing comfort to international investors. IFC expects to raise a significant amount of the required financing through syndication of long-term debt from commercial banks unwilling to invest in the project independently.
IFC will also ensure that the project is implemented in an environmentally sound manner, and significant environmental improvements are expected to arise from the project.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Dan North, Director
Gestión Aeroportuaria AGI Costa Rica, S.A.
Consorcio AGI
Oficentro Ejecutivo La Sabana
Edificio 4 - Primer Piso
San José, Costa Rica
Gestión Aeroportuaria AGI Costa Rica, S.A.
Consorcio AGI
Oficentro Ejecutivo La Sabana
Edificio 4 - Primer Piso
San José, Costa Rica