Incheon Airport is investing 200 billion won in a new airport in Uzbek…
Incheon International Airport Corporation has decided to invest 200 billion won, the largest amount in its history, in a new airport in the Republic of Uzbekistan. Next month, it plans to establish a local subsidiary to manage and develop the airport, which will serve as a springboard for expansion into Central Asia. On the 17th, the corporation announced that on the 14th (local time), an agreement was signed at the InterContinental Hotel in Tashkent, the capital of Uzbekistan, to provide consulting services for airport operations with Dubai-based investment company Vision Invest (Vision), which is the main organiser of the new airport project in Tashkent.
Under this agreement, the corporation will provide consulting services for the entire process of airport construction and operation over the next five years. The revenue from this will amount to US$25.48 million (approximately 34.8 billion Korean won). In addition, the corporation plans to conclude a public-private partnership (PPP) agreement with Vision for the development and operation of the new Tashkent airport around the end of this year. The PPP project is a structure in which one party bears the initial capital costs, such as infrastructure development and maintenance, and then manages and develops the facility for a certain period of time, receiving profits, including dividends.
After signing the PPP agreement, the corporation and the Korea Infrastructure and Urban Development Corporation (KIND) plan to invest approximately 100 billion won each to acquire a 15% stake in the new airport. The 200 billion won investment will be the largest overseas development project in the corporation's history. Following the signing ceremony, Lee Jae-hak, president of Incheon International Airport Corporation, met with reporters and stated: ‘At this event, we officially proposed to Vision that the corporation could also support urban development projects near the airport, such as the construction of roads, railways and housing, and Vision responded positively.’ He added: ‘This could also be an opportunity to create a springboard for the domestic construction industry, which is going through difficult times, to enter foreign markets.’
In addition, on the 15th (local time), Uzbekistan President Shavkat Mirziyoyev, as well as senior government officials, including representatives from the Ministry of Transport and the Ministry of Finance, and key Vision executives, participated in the groundbreaking ceremony for the new Tashkent Airport, which took place on its premises. The corporation was represented by President Lee Jae-hak, Head of New Business Projects Lee Sang-yong, and Head of Overseas Business Development Lee Chae-woo. On the same day, the corporation signed an agreement with Uzbekistan Airports on the development and operation of Urgench Airport. Urgench is located 1,100 km from Tashkent, near the city of Khiva, which is listed as a World Cultural Heritage Site.
The PPP project at Urgench Airport is the first overseas development project in which the corporation will own 100% of the shares. As the corporation will have 100% decision-making power over the construction and operation of the airport, this will ensure the joint participation of domestic companies and maximise profits. To implement projects at airports in Uzbekistan (Tashkent and Urgench), the corporation plans to establish a local subsidiary next month. This will be the fourth overseas subsidiary after Kuwait, Indonesia and the Philippines.
President Lee Jae-hak said, "Based on the corporation's accumulated experience in airport construction and operation, we will expand the export of “K-airports”. He added, ‘We plan to gain a foothold in the overseas market by building and operating the second and third Incheon airports in Central Asia, including Uzbekistan, which has high potential for development as a transport hub.’
※ Source : Korea Uzbekistan Business Association Secretariat
※ Link : https://n.news.naver.com/article/277/0005665619?sid=101
