Background of the Tender Process

By means of Law Decree No. 690, the Law for the Promotion of Investment and Citizen Participation was enacted, which states that “Municipalities may build, operate, and maintain airports, and may exercise these powers directly or delegate them to mixed or private companies through concession, partnership, capitalization, or any other contractual form in accordance with the law.” At that time, the Constitutional President of the Republic, Dr. Gustavo Noboa Bejarano, authorized the Very Illustrious Municipality of Guayaquil to:

• Build, operate, and maintain the new International Airport of Guayaquil.
• Transform, improve, operate, and maintain the former Simón Bolívar International Airport of Guayaquil.

To carry out the contracting process, the Statute of the Guayaquil Airport Authority (AAG) - a foundation of the Very Illustrious Municipality of Guayaquil - was approved.

Tender Terms

In November 2002, the Guayaquil Airport Authority (AAG) finalized the international tender terms for the airport concession. Three international groups submitted technical proposals to the AAG, including an economic offer based on a percentage of regulated revenue. The participants were:

• Corporación América (Argentina)
• Consortium of Agunsa (Chile) and Odebrecht (Brazil)
• Consortium of Hidalgo and Hidalgo (Ecuador) and Aena (Spain)

The economic offer from Corporación América, consisting of a payment of 50.25% of regulated revenue, was declared the winning bid on December 30, 2003.

Signing of the Concession Contract

Once the concession was awarded to Corporación América, the private company Terminal Aeroportuaria de Guayaquil S.A. (TAGSA) was created to operate and manage the Guayaquil Airport. The concession contract was signed on February 27, 2004, between TAGSA and the Guayaquil Airport Authority, a foundation of the Very Illustrious Municipality of Guayaquil.

TAGSA's Obligations

TAGSA committed to invest approximately USD 92 million within the first 30 months, and contribute 50.25% of gross regulated revenue throughout the concession period to the Trust Fund for the Development of the New International Airport of Guayaquil, established by the AAG. As of July 1, 2018, with the signing of the seventh amendment to the concession contract, the contribution increased from 50.25% to 55.25%, and additional works in the terminal were planned with an estimated investment of USD 32 million.

Tariffs at the airport are regulated by the concession contract and may only be increased annually based on the consumer price index, calculated as a weighted sum of 80% of the inflation rate in the United States and 20% of the inflation rate in the Republic of Ecuador.

TAGSA is responsible for maintaining 24/7 operational readiness of airport facilities and infrastructure, including:

• Runway
• Taxiways
• Passenger and cargo aircraft aprons
• Security equipment
• Passenger security control
• Services in passenger and cargo terminals
• Ramp services
• Firefighting services
• Medical services
• Vehicle parking services
• Among others

Air traffic control services are managed by the General Directorate of Civil Aviation (DGAC), the state agency responsible for air traffic control and services in Ecuador. TAGSA provides the DGAC with the necessary facilities and equipment to fulfill its duties.