The International Airport of Palmerola PPP in Honduras has achieved financial close.

Banco Atlantida acted as lead arranger for a US$69.5 million syndicated loan, alongside Banco Occidente, Banpais, Promerica, St. Georges Bank, Banrural and AFP Atlántida.

The government of Honduras and Spain will provide a grant for the project of US$23 million and US$53 million respectively.The Spanish contribution is part of a debt reconversion program with Honduras.

As we reported in April 2016, the contract for the project was signed among with Honduras' Inversion EMCO S.A. de C.V.,  who is partnering with the operator of Munich's international airport. The remaining US$17.5 million will be provided as equity by EMCO.

EMCO and its partner won the 30-year contract for the designing, building, financing, operation and maintenance of the new airport in December 2015. The consortium was the only bidder for the project.

The project was previously awarded in January 2014 to Constructora de Servicios Aeroportuarios Integrados S.A. (SAISA) but the contract was canceled. The delay to start the project was the reason to cancel the concession contract.

The airport development includes the construction of a runway shoulders, a new control tower, a 14,000 m² passenger terminal and a 1500 m² cargo terminal. It is expected to have a maximum capacity of 2.1 million passengers per year in 2045.

The total project investment is estimated at US$135 million. The private partner will provide US$87 million, with the remaining to be provided by the Spanish government through the Honduras-Spain restructuring debt fund.

The project will help strengthen the logistics hub of the country. It will has a significant impact in the agricultural and industrial region of Comayagua and La Paz.