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Viewing cable 06LIMA1776, STATUS OF LIMA AIRPORT - QUESTIONS ANSWERED

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Reference ID Created Released Classification Origin
06LIMA1776 2006-05-09 14:23 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Lima
VZCZCXYZ0000
RR RUEHWEB

DE RUEHPE #1776/01 1291423
ZNR UUUUU ZZH
R 091423Z MAY 06
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC 0319
INFO RUEHBO/AMEMBASSY BOGOTA 3353
RUEHQT/AMEMBASSY QUITO 0307
RUEHLP/AMEMBASSY LA PAZ MAY SANTIAGO 0489
RUEHCV/AMEMBASSY CARACAS 9411
RUEHBU/AMEMBASSY BUENOS AIRES 2376
RUEANHA/FAA NATIONAL HQ WASHDC
RUEAYVF/FAA MIAMI FL
RUEKJCS/DOD WASHINGTON DC
UNCLAS LIMA 001776 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR WHA/AND, EB/TRA/AN, PM/ISO 
PENTAGON FOR USAF/XONP DALE CHANEY 
 
E.O. 12958: N/A 
TAGS: EAIR ECON EFIN ETRD EINV PGOV PE
SUBJECT: STATUS OF LIMA AIRPORT - QUESTIONS ANSWERED 
 
REF: A) STATE 57224      B) LIMA 1774 
 
1.  (SBU) Summary.  Per reftel A, Post met with officials 
from the Ministry of Foreign Affairs Aviation Office and the 
Lima Airport Partners (LAP) to ascertain information about 
the Lima Airport.  Both the GOP and LAP continue to 
emphasize that the Lima Airport should not be considered a 
government airport, as it was concessioned to Lima Airport 
Partners in February 2001.  Because both the GOP and LAP 
consider the Lima Jorge Chavez airport to be a private 
airport, officials argue that Embassy Lima must pay its 
outstanding bill dating back to 2001 for landing and other 
fees for state flights.  Reftel B provides Post's 
recommendation on how to best resolve this issue.  End 
Summary. 
 
Peruvian Government Emphasizes 
Concession Contract 
------------------------------ 
 
2.  (SBU) We spoke to Augusto Arzubiaga, Minister Counselor 
for Aviation Affairs at the Ministry of Foreign Affairs, to 
discuss the status of the Lima Airport.  Arzubiaga noted 
that the GOP considers the Lima airport to be privately 
owned, and therefore the USG should pay landing and related 
fees for state flights that land at the Jorge Chavez 
Airport.  Arzubiaga explained, however, that the Ministry of 
Transport was willing to cover all fees for narcotics 
related flights, per the 1998 U.S.-Peru narcotics agreement. 
Post noted our appreciation and explained that we were 
coordinating with Washington the appropriate response 
(Reftel B). 
 
3.  (SBU) The Ministry of Transport and the Ministry of 
Foreign Affairs provided Econoff with the following answers 
to the four questions provided in reftel A:  (Note:  This is 
an unofficial translation.  End Note) 
 
--Is the airport operated by the national government or a 
national government agency? 
 
The Jorge Chavez International Airport is operated by a 
private consortium, Lima Airport Partners S.R.L, which is 
controlled by Alterra Partners and Fraport AG Frankfurt 
Airport Services Worldwide.  LAP and the Peruvian Government 
entered into a concession agreement on February 14, 2001. 
 
--If operations are conducted by an entity which is not 
clearly the government or an agency of the government, how 
much of the entity's funding (on a percentage basis) comes 
from the national government? 
 
Due to the modality of the contract of the Build Operate 
Transfer (BOT) concession, the resources for the 
improvements and operation of the airport originate 
primarily from the Concessionaire (LAP). 
 
--If the airport is operated on a for-profit basis, is a 
portion of the revenue (not including taxes) returned to the 
national government?  If so, what percentage of the revenue 
is returned to the national government? 
 
LAP has an obligation, under its concession contract, to pay 
the Peruvian State 46.511 percent of its revenues. 
 
--Is the entity operating the airport subject to day-to-day 
operational guidance from the national government? 
 
The Concessionaire is subject to ICAO international norms. 
OSITRAN, the Peruvian regulatory agency for investment in 
infrastructure and public transport, ensures that the 
Concessionaire fulfills its contract. 
 
LAP:  Airport is Privately Controlled 
------------------------------------- 
 
4.  (SBU) We also met with Bill Fullerton, Chief Development 
Officer at Lima Airport Partners, to further clarify how to 
classify the Jorge Chavez Airport.  In addition to 
emphasizing that the Lima Airport is privately run, 
Fullerton noted that LAP will be contacting the Embassy this 
week to encourage immediate payment of the outstanding bill. 
We noted that we are working with the Ministry of Foreign 
Affairs to resolve this issue in a timely fashion. 
 
5.  (SBU) LAP provided the following answers to the four 
questions: 
 
--Is the airport operated by the national government or a 
national government agency? 
 
The Jorge Chavez International Airport (JCIA) is operated by 
Lima Airport Partners S.R.L. (LAP) by means of the 
concession agreement executed on February 14, 2001, by and 
between LAP and the Peruvian Government (represented by the 
Ministry of Transportation).  LAP is a private Limited 
Liability Corporation set up in Lima, Peru, currently owned 
by Fraport (a German-based company) and Alterra (a UK-based 
company). 
 
--If operations are conducted by an entity which is not 
clearly the government or an agency of the government, how 
much of the entity's funding (on a percentage basis) comes 
from the national government? 
 
LAP's funding does not come from the national government but 
from the tariffs and prices charged for the provision of 
services to the users of the Airport (mainly passengers and 
airlines) based upon the use of the airport facilities or 
infrastructure. 
 
--If the airport is operated on a for-profit basis, is a 
portion of the revenue (not including taxes) returned to the 
national government?  If so, what percentage of the revenue 
is returned to the national government? 
 
According to the concession agreement, LAP is obligated to 
pay the Peruvian state 46.511 percent of the total Gross 
Revenues obtained by LAP for all aeronautical and commercial 
activities.  Furthermore, LAP has to pay OSITRAN (the 
regulatory and supervisory national agency) up to 1 percent 
of LAP's total revenues as a "regulatory fee."  There are 
revenues that LAP is obligated to share with CORPAC -- a 
wholly state-owned company in charge of air traffic control 
in Peru and of the management and operation of all other 
public airports around the country.  This is based on a 
percentage of LAP's revenues from the Airport Use Tariff 
(TUUA) charged to international passengers (20 percent share 
is for CORPAC) and from the landing fees (50 percent is for 
CORPAC). 
 
--Is the entity operating the airport subject to day-to-day 
operational guidance from the national government? 
 
LAP is subject to the provisions stated in its concession 
agreement with the government and the applicable legal 
framework.  OSITRAN is in charge of supervising LAP's 
compliance with such regulations. 
 
 
STRUBLE