Denver airport, Ferrovial near deal for $1B P3 contract
- Denver International Airport (DIA) officials are in final negotiations with Spanish firm Ferrovial for a $1 billion public-private partnership (P3) for a terminal renovation, according to the Denver Post.
- As part of the P3, Ferrovial and DIA would share upfront costs of a massive four-year renovation of the Jeppesen Terminal, revamping security and tripling the facility's space. DIA would pay Ferrovial approximately $30 million a year to operate the terminal for 30 years, and Ferrovial would pay DIA 80% of the airport concession income.
- If the Denver City Council approves the DIA–Ferrovial contract in July, it will be the biggest P3 in city history. The actual cost of construction is between $650 million and $775 million.
The new airport design will also reflect the anticipated decline in the need for ticket counter service as the industry moves toward self-service kiosks and other ticketing trends that don't require an agent. When the project is complete, the terminal will be able to accommodate 80 million passengers a year.
DIA announced last July that it had entered into negotiations with Ferrovial for a P3 renovation. Ferrovial comes to the deal with experience in airport construction and operations, as it operates several airports in the U.K., including London's Heathrow Airport.
Airport terminal expansions are hot right now, and the need for basic maintenance and upkeep of the nation's airports is also a pressing concern. To that end, the U.S. Department of Transportation last week announced $528 million in Federal Aviation Administration Airport Improvement Project grants. The money will be used for runway and other capital improvements at 584 airports.
However, according to a recent Airports Council International—North America report, it would take approximately $100 billion over five years to make the necessary repairs and upgrades at the nation's airports.
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