Incheon Airport Corporation Wins Urgench Airport Development and Operation Project in Uzbekistan

First Entry into Central Asia Since Opening
BTO Model: 3 Years of Construction, 19 Years of Operation

For the first time since its opening, Incheon Airport is entering the Central Asian airport development and operation business.

A bird's-eye view of the new passenger terminal at Urgench Airport, Uzbekistan. Provided by Incheon International Airport Corporation.

On April 22, Incheon International Airport Corporation announced that it has been selected as the preferred bidder for the development and operation (PPP) project of Urgench Airport in Uzbekistan. The corporation aims to sign a final implementation agreement after three months of main negotiations.

This marks the corporation's first foray into a Central Asian airport PPP project, with a total project cost of approximately 200 billion KRW. As part of the Uzbek government's aviation infrastructure modernization policy, the project will be carried out as a Build-Transfer-Operate (BTO) model, with private sector-led construction and operation of the new airport.

If the final contract is signed, the corporation will construct a new passenger terminal with an annual capacity of about 3 million passengers over three years and operate it for 19 years. Holding a 100% stake, the corporation will appoint the airport's CEO and key executives, exercising full decision-making authority over airport construction and operations. In effect, it will be building and operating a "second Incheon Airport" in Central Asia. The corporation also plans to bring domestic construction and engineering companies into the project. This is the first time the corporation has secured full operating rights in an overseas airport PPP project.

Urgench Airport is the main gateway airport in the Khorezm region of western Uzbekistan and is currently the country's third-largest airport by passenger volume. Adjacent to the UNESCO World Heritage site of Khiva, it has high potential to grow as an international tourism hub. In fact, air travel demand in Uzbekistan is rapidly increasing. As of last year, Urgench Airport handled about 700,000 passengers, a 175% increase compared to 2019 before the COVID-19 pandemic. Uzbekistan's total aviation performance increased by more than 30% compared to 2023.

This contract was made possible through the collaboration and policy support of the Ministry of Land, Infrastructure and Transport and Korea Overseas Infrastructure and Urban Development Corporation (KIND). In the bidding process, the corporation competed against the global airport operator TAV?France ADP consortium and Limak, Turkey's largest construction company. The corporation's expertise in airport construction and operation received high marks from the Uzbek government.

Lee Hakjae, President of the corporation, stated, "This project will serve as an important foundation for expanding into the Central Asian market, including Kazakhstan, in the future," adding, "We will further strengthen the global competitiveness of Korea's airport industry in line with government policy."