San Jose International Airport

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The consortium Alterra Partners, formed by Bechtel, AGI and partners from Costa Rica, won the 20 year concession contract to expand, rehabilitate and operate the airport at San Jose. The contract included modernization and expansion works valued at US$160 million during the first 10 years of the contract (a new terminal and taxiway would be constructed, the runway would be extended and rehabilitated, and the security systems would be improved). Alterra Partners was owned by Bechtel (50%), AGI (42.5%), Motorola de Costa Rica (3%), Propriedades La Nueva Tecnologia (2.2%), Integracion Aduanera (1.7%), Edica (0.5%) and Terminal Aerea General (0.1%). The sponsors would transfer to the Civil Aviation Authority 35.3% of the airport gross revenues. The airport had the greatest amount of traffic in Central America, handling nearly 2.3 million passengers per year in 2001. The takeover of the airport management functions occurred in Nov. 2000. In Dec. 2000, the IFC approved a US$ 120 million financing package to the project: US$ 35 million in direct loans and US$ 85 million in syndication. These resources were to finance the sponsor's investment in the first three years of the project. In July 2003, upgrade and construction works were suspended due to a contractual dispute over the tariffs that Alterra was charging, in part to recoup the modernization costs. According to Costa Rica's Comptroller General, tariffs were too high and the consortium was not entitled to raise cash in this way under the contract it had. The Comptroller General asked the government to intervene and compel the Technical Council on Civil Aviation to fulfill an order that it would reduce these 'unjustified' tariffs. The consortium filed for arbitration demanding US$79 million indemnity from the government. In November 2004, the national arbitration council referred the case to national courts. In December 2004, Alterra Partners and the Costa Rica's government started negotiations with regarding a US$18.7 million claim by Alterra for lost revenue. The government warned the concessionaire that it would initiate the process to transfer the airport to the aviation authority (Cetac) if an agreement was not reached. In June 2005 Alterra accepted a US$15 million offer from Ministerio de Obras Publicas y Transportes (MOPT - Costa Rica's public works and transportation ministry) to settle the lost revenue claim. Despite the agreement between Alterra and MOPT, some legal issues were still pending regarding the involvement of the Comptroller General. As of December 2007, an agreement to drop the charges in exchange for a contract extension of five years has not been agreed to. The IFC had offered its assistance with the settlement. In May 2009, Costa Rica's comptroller general has ratified an addendum to the contract regulating the concession of capital San Jose's Juan Santamaría international airport, placing the facility's administration into the hands of US-based concessionaire Houston Airport Systems Development Corporation (HASDC). The consortium, which is now known as Aeris Holding Costa Rica, also includes Canada's Airport Development Corporation and Brazil's Andrade Gutierrez. The exact shareholding was not known, but the sponsors combined share was over 95% of the profect company. HASDC will operate the facility for the next 25 years and will be required to update the expansion project master plan, buy Alterra's shares and pay US$10mn in fines the UK company accumulated with the government. In December 2009 a US $45 million loan was approved by the IADB to assist with the expansion of Juan Santamria International Airport. The number of check-in counters was increased from 58 to 78 and the immigration area was expanded from 444m2 to 1,153m2. An additional 28 booths for checking visas and passports as well as new stores, restaurants and a waiting room were opened. In December 2015, Aeris closed a US$ 127 million private placement bond issue to refinance debt p May 2009, Costa Rica's comptroller general has ratified an addendum to the contract regulating the concession of capital San José's Juan Santamaría international airport, placing the facility's administration into the hands of US-based concessionaire Houston Airport Systems Development Corporation (HASDC)