Case Study of LMM Airport Concession in Puerto Rico

When the Federal Aviation Reauthorization Act of 1996 established the Federal Aviation Administration (FAA) Airport Privatization Pilot Program, it was the intent of Congress to explore new sources of capital and investment from the private sector and pass the benefits and improvements to the users. During the existence of the pilot program it received 10 applications; the first successful concession in 2000 of the Stewart International Airport in New York was ended prematurely in 2007. The second closing has come through the use of a public-private partnership (PPP) in Puerto Rico. This deal is very different to a privatization, because ownership of the asset remains in the public hands, and benefits to the users are linked to specific operating standards. Required improvement is to the asset inside the concession agreement. Puerto Rico's project involved the 40-year lease for the financing, operation, maintenance, and improvement of the Luis Muñoz Marín (LMM) International Airport, a transaction worth $2.6 billion. A case study of the LMM airport concession is presented, and features of it are compared with two other transactions in the pilot program.

• Record URL:
  https://doi.org/10.1061/9780784413517.141
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/isbn/9780784413517
• Supplemental Notes:
  • © 2014 American Society of Civil Engineers.
• Corporate Authors:

  American Society of Civil Engineers

  1801 Alexander Bell Drive
  Reston, VA  United States  20191-4400
• Authors:
  • González, Edwin E
  • Garvin, Michael J
• Conference:
  • Construction Research Congress 2014
  • Location: Atlanta Georgia, United States
  • Date: 2014-5-19 to 2014-5-21
• Publication Date: 2014-5

Language

• English

Media Info

• Media Type: Web
• Features: References;
• Pagination: pp 1379-1388
• Monograph Title: Construction Research Congress 2014: Construction in a Global Network

Subject/Index Terms

• TRT Terms: Airport operations; Asset management; Capital investments; Case studies; Concessions; Financing; Improvements; Public private partnerships
• Identifier Terms: Stewart International Airport
• Geographic Terms: Puerto Rico
• Subject Areas: Aviation; Construction; Finance; Planning and Forecasting; Terminals and Facilities; I20: Design and Planning of Transport Infrastructure; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01525536
• Record Type: Publication
• ISBN: 9780784413517
• Files: TRIS, ASCE
• Created Date: May 28 2014 3:21PM