Incheon Airport Corporation Signs Government Support Agreement for Urgench Airport Development Project

On November 18 (local time), Incheon International Airport Corporation officially signed a Government Support Agreement (GSA) with the Uzbek government in Tashkent, Uzbekistan, for the development and operation of Urgench Airport (PPP project).

This agreement stipulates that if Uzbekistan Airports, the project client, fails to fulfill its obligations under the main contract, the Uzbek government will directly guarantee and support those obligations. This means that a government-backed guarantee system has been secured to ensure the stable implementation of the Urgench Airport project.

On the 18th (local time), at the 'Urgench Airport Project Government Support Agreement (GSA) Signing Ceremony' held in Tashkent, Uzbekistan, Lee Sangyong, Head of New Business Division at Incheon International Airport Corporation (left in the photo), and Ilkhomjon Umrzakov, Deputy Minister of Finance of Uzbekistan (right in the photo), are taking a commemorative photo after signing the agreement. Incheon International Airport Corporation

The Urgench Airport development and operation project is the first overseas airport development and operation project in which Incheon International Airport Corporation holds 100% operational rights. The project, with a total investment of approximately 200 billion won, involves constructing a new passenger terminal over the next three years, followed by exclusive operation for 19 years.

After an international competitive bidding process, the corporation was selected as the preferred bidder in April and is currently proceeding with the establishment of a special purpose company (SPC) in Uzbekistan for the Urgench Airport project. The main contract (Concession Agreement) is scheduled to be signed in December. Once the main contract is concluded, the project will enter its full-scale phase, including preparations for the new terminal’s construction and coordination of permits and approvals.

At the GSA signing ceremony held on this day, Lee Sangyong, Head of New Business Division at Incheon International Airport Corporation, presented ways in which Incheon Airport’s accumulated expertise in airport development and operation can contribute to Uzbekistan’s economic growth. He particularly emphasized the economic ripple effects of airport PPP projects, such as job creation and revitalization of local tourism.

Meanwhile, since launching the Erbil New Airport operation support project in Iraq in 2009, the corporation has carried out 39 overseas projects in 18 countries, achieving a cumulative order value of approximately 423.99 million US dollars, thereby enhancing its status as a global airport operation specialist.

Lee Hakjae, President of Incheon International Airport Corporation, stated, “By establishing a second Incheon Airport model at Urgench Airport, we plan to actively expand the ‘K-Airport’ expertise accumulated by Incheon Airport throughout Central Asia.”