-- Project funding has resumed and construction ramp-up underway --
TORONTO, Feb. 9 /CNW/ - Aecon Group Inc. (TSX: ARE) announced today that
the previously disclosed restructuring of the Quito International
Airport project has been finalized, and project funding has resumed.
The restructuring, which has received approval from the Constitutional
Court of Ecuador, addresses a prior Court ruling which raised a number
of issues important to Aecon and its partners, the project lenders, and
the Municipality of Quito.
With the restructuring finalized, construction activity will now ramp-up
on the site, with completion of the new airport now scheduled for
October 2012. Construction is approximately 72% complete.
Key elements of the restructuring include:
Corporacion Quiport S.A ("Quiport"), which holds concession rights to
both the existing Quito Airport and the new airport currently under
construction, will pay the municipality of Quito 11% of the new
airport's "Regulated" revenues (rising to 12% in the final five years
of the concession). Regulated revenues include such things as airline
landing fees and passenger departure fees.
A schedule of fee increases was established for all Regulated fees. The
schedule, which follows the maximums established in the original
concession agreements, provides Quiport with increased certainty
regarding the revenues expected to be derived from the concession, and
does not limit Quiport's ability to charge market fees for
"Non-regulated" items such as duty free and car rental concessions,
parking, food services etc.
"The closing of this new commercial agreement is a major step forward
for the Quito Airport Project," said Steve Nackan, President of Aecon
Concessions. "It provides the Ecuadorian authorities and the
Municipality of Quito with the assurances they require, and it provides
Aecon, our partners and lenders with increased certainty regarding the
revenues to be expected from the project."
The restructuring was negotiated among the various parties involved in
the Quito International Airport Project, including the Municipality of
Quito, the Ecuadorian authorities, the Canadian Commercial Corporation
("CCC", an agency of the Government of Canada that holds the contract
to construct the new Quito Airport), and the project lenders, as well
as Aecon and its partners in Quiport.
A number of approvals and conditions precedent were required before the
restructuring could be finalized, all of which are now in place.
Aecon has a 42.3% economic interest in the Quito airport concession
through its stake in Quiport. The project's senior lenders are:
Overseas Private Investment Corporation of the USA, Export-Import Bank
of the USA, the Inter-American Development Bank and Export Development
Aecon Group Inc. is Canada's largest, publicly traded construction and
infrastructure development company. Aecon and its subsidiaries provide
services to private and public sector clients throughout Canada and on
a selected basis internationally. Aecon is pleased to be recognized as
one of the Best Employers in Canada as published by Maclean's Magazine.
The information in this press release includes certain forward-looking
statements. These "forward-looking" statements are based on currently
available competitive, financial and economic data and operating plans
but are subject to risks and uncertainties. In addition to general
global events outside Aecon's control, there are factors which could
cause actual results, performance or achievements to vary from those
expressed or inferred herein including risks associated with an investment in the common shares of Aecon and
the risks related to Aecon's business, including Large Project Risk and
Contractual Factors. Risk factors are discussed in greater detail in
the section on "Risk Factors" in the Final Short Form Prospectus filed
on October 1, 2010 and available at www.sedar.com. Forward-looking statements include information concerning possible or
assumed future results of operations or financial position of Aecon, as
well as statements preceded by, followed by, or that include the words
"believes," "expects," "anticipates," "estimates," "projects,"
"intends," "should" or similar expressions. Important factors, in
addition to those discussed in this document, could affect the future
results of Aecon and could cause those results to differ materially
from those expressed in any forward-looking statements.
SOURCE Aecon Group Inc.
For further information:
Senior Vice President,
Aecon Group Inc.