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Peru's private investment promotion agency ProInversion has announced that the Kuntur Wasi consortium, formed by Peru's Andino Investment Holding and Argentina's Corporacion America, has been awarded the Cusco airport concession.

The Kuntur Wasi consortium,  with a bid of US$264.7 million, beat out from competition the other two teams that submitted bids for the project:

• Aeroportuario Imperial consortium formed by Colombia's Grupo Odinsa and Mota Engil Perú; and

• Aeropuerto Chinchero consortium formed by France's Vinci Airport, Vinci Concessions and Peru's Graña y Montero.

In 2010, that same consortium won concessions for airports in six southern Peruvian regions: Apurimac, Ayacucho, Puno, Madre de Dios, Arequipa and Tacna.

The concession contract will include the design, construction, financing, operation and maintenance of the new International Airport of Chinchero - Cusco.

Kuntur Wasi will invest 53% of the total investment in the project, estimated at US$539 million or US$658 million if future expansions and renovations are carried out.

The concession contract will have a period of 40 years. Construction is expected to star in 2016 while construction period is estimated at 5 years.

The new airport will cover an area of 40,000 sq. meters and will replace the existing Alejandro Velasco Astete air terminal, which serves tourists visiting the the city of Cuzco and the nearby Inca citadel of Machu Picchu and is Peru's second-busiest.

It is expected that the airport will have an initial capacity to serve 5 million passengers annually but that total will rise to 8 million in ensuing years. It will have links to destinations in South American countries including Argentina, Ecuador and Chile.