Ministry amends LAP contract, again

Peru's transport ministry has approved the fourth change to Lima Airport Partners' ( LAP) contract for its Jorge Chavez international airport concession in capital Lima, allowing private investors to play a larger role in airport development, the ministry announced. The US government's Overseas Private Investment Corporation (OPIC) and German development bank KfW had previously requested modifications as a condition to lend LAP US$106mn for airport investments, BNamericas reported in February. According to new contract conditions, investment in the airport should reach US$110mn by February 2005. Further, the ministry has until February 2009 to submit land to LAP for a second landing runway, which the concessionaire must complete five years thereafter. Earlier contract guidelines mandated US$100mn in investments by August 2004, and the concessionaire started a series of works that fell under this investment plan January 15. LAP had originally planned to develop the new runway by its eleventh year as concessionaire, which started February 2001. LAP is made up of Germany's Flughafen Frankfurt Main AG, Bechtel Enterprises International (Alterra Partners) and Peru's Cosapi. It won the US$1.2bn Jorge Chavez concession in late 2000, and the ministry previously amended its contract in April and July 2001 and September 2002.