CAPITAL Airports Holding (CAH), China's biggest mainland air field operator, is bidding to run six airports in Colombia and Peru.
State-owned CAH's Colombia deputy chief, Oscar Hernandez, said the successful bidder for the estimated US$240 million job is expected to be known next March after next two rounds of bidding.
Mr Hernandez said this would open further opportunities in Brazil, Chile and other nearby countries for the company that is the airport building and management arm of the Civil Aviation Administration of China.
For Capital Airports, which runs 34 mainland airports, Colombia, represents its only overseas operation, in which it has 20 per cent stake in the Air Plan consortium, which won the contract in March 2007 to upgrade and operate six Colombian airports for up to 25 years.
CAH Colombia CEO Zhu Zhenghong said the company's overseas expansion had been delayed by the execution of its chairman Li Peiying, who was convicted of fraudulently appropriating CNY82.5 million and taking CNY26.61 million in bribes.
Beijing has financed airport construction and upgrades in Africa, and Mr Zhu said CAH expects to expand its role, but still lacked experience. The current deal is set for a 15-year minimum but can be extended to 25 years if throughput and revenue objectives are met. In the event of a shortfall, the report said the China Development Bank has provided backup financing. News provided by the Hongkong Shipping Gazette