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AA2000 reaches agreement with governmentAA2000 reaches agreement with government
John Gallagher
19-Jun-2006
The Argentinian airports group has finally reached an agreement with the country's government after a long-running dispute over concession fees
The long-running contractual dispute between airports group Aeropuertos Argentina 2000 (AA2000) and the Argentinian government has ended with the state taking ownership of a substantial share of the company.According to a press release issued by AA2000, both parties have signed a new agreement that gives the government control of 20% of the airport authority. A further 20% will be floated on the Buenos Aires stock exchange, although the government has first refusal on this stake before flotation. RavenFox.com understands that the government will have a permanent representative on the AA2000 board.
Under the terms of the deal, a revised concession contract has been drawn up writing off AA2000's outstanding debt of Ps1.2bn ($390m) owed to the government. As a reciprocal gesture, Ps350m ($113.6m) owed by the government to AA2000 has also been waived.
The concession fee for the remaining part of the contract will be a percentage of AA2000's annual profit. Local analysts estimate this payment to stand at Ps120m ($39m).
AA2000 is to invest Ps1bn ($325m) in its airport network during the next five years. Its new contract allows for a flexible investment programme tied to passenger traffic to be negotiated between the government and the concessionaire.
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