Investment in Tashkent and Urgench Airports in Uzbekistan
Five-Year Consulting Contract for Tashkent New Airport Worth 34.8 Billion Won
Urgench Airport Marks Corporation’s First 100% Equity Stake
Incheon International Airport Corporation has decided to make its largest-ever investment of 200 billion won in a new airport in Uzbekistan. By establishing a local subsidiary next month to oversee airport operation and development, the corporation aims to secure a foothold for expanding into Central Asia.
On October 14 (local time), the corporation announced that it had signed an airport operation consulting agreement with Vision Invest, a Dubai-based investment company and the lead operator of the Tashkent New Airport project, at the Intercontinental Hotel in Tashkent, the capital of Uzbekistan. Under this agreement, the corporation will provide consulting services for all aspects of airport construction and operation over the next five years. The revenue from this contract is expected to be 25.48 million dollars (approximately 3.48 billion won).
Hakjae Lee (right), President of Incheon International Airport Corporation, attended the contract signing ceremony for the development and operation of Urgench Airport held on the 15th (local time) at the Lotte Hotel in Tashkent, Uzbekistan. Photo by Airport Photographers Group Yonhap News Agency
Additionally, by the end of this year, the corporation plans to sign a public-private partnership (PPP) contract with Vision Invest for the development and operation of Tashkent New Airport. In a PPP project, initial capital investments such as infrastructure development and maintenance are undertaken, and the entity is entitled to operate and develop the facility for a set period, earning profits such as dividends. Upon signing the PPP contract, the corporation and Korea Overseas Infrastructure and Urban Development Corporation (KIND) each plan to invest approximately 100 billion won to acquire a 15% stake in the new airport. The 200 billion won investment marks the largest overseas development project in the corporation’s history.
Hakjae Lee, President of Incheon International Airport Corporation, told reporters immediately after the signing ceremony, “At today’s event, I officially proposed to Vision Invest that the corporation could also support urban development projects near the airport, such as roads, railways, and housing. Vision Invest responded positively,” he said. “This could also serve as an opportunity to provide a bridgehead for domestic construction companies facing challenging business conditions to expand overseas.”
Furthermore, at the groundbreaking ceremony for Tashkent New Airport held on October 15 (local time) at the airport site, a large number of government officials, including President Shavkat Mirziyoyev of Uzbekistan, as well as representatives from the Ministry of Transport, Ministry of Finance, and key personnel from Vision Invest, were in attendance. The corporation was represented by President Lee, Lee Sangyong, Head of New Business Division, and Lee Chaewoo, Director of Overseas Business Development.
Lee Hak-jae, President of Incheon International Airport Corporation (left), and Omar Almidani, CEO of Vision Investment, are posing for a commemorative photo at the signing ceremony for the operation contract of Tashkent New Airport held on the 14th (local time) at the Intercontinental Hotel in Tashkent, Uzbekistan. Photo by Yonhap News Airport Photographers Group
On the same day, the corporation also signed a “development and operation agreement for the Urgench Airport development and operation project” with Uzbekistan Airports. Urgench is a city located 1,100 kilometers from Tashkent and is adjacent to the UNESCO World Heritage site of Khiva.
The Urgench Airport PPP project is the corporation’s first overseas development project in which it will hold a 100% stake. This enables the corporation to exercise full decision-making authority over airport construction and operation, allowing for the participation of domestic companies and maximizing potential profits.
To support its airport projects in Tashkent, Urgench, and other locations in Uzbekistan, the corporation plans to establish a local subsidiary next month. This will be its fourth overseas subsidiary, following those in Kuwait, Indonesia, and the Philippines.
President Lee stated, “Based on the know-how we have accumulated in airport construction and operation, we will expand the export of ‘K-Airports.’ We plan to build and operate a second and third Incheon Airport in Uzbekistan, which has high potential to become a transportation hub, as well as in other parts of Central Asia, thereby establishing a bridgehead for expanding our overseas business.”
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