Guatemala to Launch PPP Tender to ‘Rescue’ La Aurora Airport

Kevin Rozario

London

June 28, 2024

Guatemala City lr credit Soliman Cifuentes Unsplash

The bustling historic center of Guatemala City.

© Soliman Cifuentes / Unsplash

A PPP tender process for La Aurora Airport (GUA) was floated by the Guatemalan government in June according to local media reports, with a selection process expected to be concluded next year.

GUA is the Central American country’s main international gateway serving the capital, Guatemala City which is situated to the south of the country. The airport is in an urban setting just a few miles from the center of the capital.

Guatemala—whose population is 18 million (about three million of whom reside in Guatemala City’s sprawl)—is flanked to the north by Mexico, to the east by Belize, and to the south by Honduras and El Salvador. The country has a small coastline to the east facing the Caribbean Sea and a longer one to the west facing the North Pacific Ocean.

According to Chile-based BNAmericas, the country’s President Bernardo Arévalo—sworn in in January after a landslide election win last August on an anti-corruption ticket—recently met with interested infrastructure players (though they were not named). On June 18, at an event entitled Airports: Axis of Inclusive Development, the president announced that the government would move forward with a public-private partnership (PPP) tender for GUA.

Two days later at the airport, he held a press conference, recorded here by TN23 Guatelama, where he reiterated the message about tendering for the revamp of GUA. He told media that a PPP for upgrading GUA was on the cards as a way “to allow the government and private sector to face the great challenges the terminal poses together.”

guatemala map

© Google Maps

BNAmericas quoted Arévalo as saying: “We believe that the rescue operation of La Aurora International Airport might be a positive example of collaboration between the public and private sectors, defined by transparency and a strategic orientation to seek the common good.”

The description of a ‘rescue’ operation may reflect the airport being a political football in recent times as well as its poor condition, an issue affecting the country’s entire infrastructure. There has been some debate on the viability and value of the gateway as well, and the capability of its management.

The airport is currently run by the country’s civil aviation authority, the General Directorate of Civil Aeronautics (DGAC). The agency is headquartered at GUA and falls under the remit of Guatemala’s Ministry of Communications, Infrastructure, and Housing, led by Félix Alvarado since January 15.

The Arévalo administration has said it is working on “urgent solutions” to strengthen the DGAC as well as the country’s weak infrastructure which the president has blamed on previous administrations’ “decades of negligence, incompetence and corruption.”

Below we look at the potential for the airport PPP project and why it might appeal to global infrastructure players as a potential first step in a developing market that will be looking for external help under the current government.

Investor Insights

Subscriber-only content. You must be signed in and have a subscription plan to view this information.

Not a member of airportIR?

Subscribers receive access to value-added content including the latest Deal Pipeline intel, in-depth feature articles and analysis, operator/investor profiles, industry insights, reports and much more.

What's Included

  • In-depth deal pipeline content
  • Feature articles and analysis
  • Detailed operator/investor profiles
  • Industry insights, reports and much more

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Proin faucibus arcu et sem dapibus, faucibus viverra ex semper. Sed maximus urna quis lectus porta gravida. Sed enim sem, ullamcorper at tempor et, tincidunt eget purus. Etiam vitae iaculis dolor. Etiam commodo tempus turpis. Integer ac nunc ac leo facilisis tempus. Pellentesque quis sagittis diam. Fusce congue pulvinar interdum. Curabitur porta libero enim, ullamcorper condimentum diam accumsan quis. In tempor egestas risus, id congue nibh cursus in. Cras sollicitudin fermentum orci et eleifend.

Nam eget imperdiet risus, at luctus nulla. Nullam porttitor, est quis viverra fringilla, ipsum velit tincidunt massa, vel egestas lacus velit eget mauris. Proin finibus condimentum tellus, in commodo felis dapibus a. Curabitur luctus et sapien a dapibus. Mauris faucibus dapibus justo vitae varius. Proin quis mauris eros. Curabitur tincidunt feugiat dignissim.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Proin faucibus arcu et sem dapibus, faucibus viverra ex semper. Sed maximus urna quis lectus porta gravida. Sed enim sem, ullamcorper at tempor et, tincidunt eget purus. Etiam vitae iaculis dolor. Etiam commodo tempus turpis. Integer ac nunc ac leo facilisis tempus.