Ecuador's Largest Resort Manta
Finalizing Long-Term Airport Operation Contract
Expected to Be a Foothold for Latin American Market Entry
[Quito (Ecuador) = Asia Economy Reporter Dongwoo Lee] Korea Airports Corporation (KAC) has entered final negotiations to sign a contract for the airport operation rights project in 'Manta,' Ecuador's largest port and resort city.
The KAC negotiation team met with the Ecuadorian government on the 18th (local time) to coordinate the details of the 30-year long-term operation rights contract for Manta Airport, worth a total of 540 billion KRW. Once the operation rights contract is completed, Manta Airport is expected to become the 15th airport operated by the corporation, which currently manages 14 airports domestically.
Through this contract, KAC plans to manage and operate all airport facilities at Manta Airport, including the passenger terminal and runway, from as early as 2022 until 2051. KAC expects profits from airport operations by investing 100% equity in Manta Airport through this contract.
KAC envisions using the Manta Airport operation rights project as a foothold for full-scale entry into the Latin American market. According to KOTRA, Ecuador is located at the western starting point of the South American continent, with easy access northward to the United States, a transportation hub, and southward to other South American countries, making it advantageous for developing international routes.
In particular, Manta Airport, located in the capital of Manab? Province, Ecuador, is situated within approximately 1,000 km in a straight line from the Gal?pagos Islands, a UNESCO World Heritage site, making it favorable for attracting visitors from around the world.
KAC plans to steadily expand its presence in the aviation market in Latin America, including Ecuador, through consulting for the operation of seven airports in Colombia and aviation personnel training projects in Paraguay. Previously, in 2019, KAC became the first domestic company to win the Project Management Office (PMO) contract overseeing the construction of the new Chinchero Airport in Peru.
Son Chang-wan, President of Korea Airports Corporation, said, "If we win the Manta Airport operation rights project, Korean companies will be the first to enter the Latin American airport operation rights market, which has been dominated by global airport operators, leading the realization of K-Airports worldwide."
Meanwhile, the public-private partnership consortium 'Team Korea,' led by KAC, will hold a groundbreaking ceremony for the new Chinchero Airport construction project at the Cusco provincial government office in Peru on the 19th (local time). The Chinchero New Airport construction project, which will serve as the gateway to Machu Picchu, the ancient site of the Inca civilization in Peru, is a project promoted by the Peruvian government with an investment of approximately 760 billion KRW.
The goal is to build an international airport by 2025 with a 4 km-long runway, one terminal building with 13 boarding gates, and 13 aprons, capable of handling up to 5.7 million passengers annually. The Team Korea consortium is responsible for the Project Management Office role, overseeing the selection of construction and engineering companies, progress management, and airport commissioning on behalf of the Peruvian government, the project owner. The project scale is approximately 35 billion KRW.
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