VINCI Airports and the Government of the Dominican Republic extend airport concession contract for 30 additional years

22 December 2023 - 8:45 am - Acquisitions - France

• Agreement to extend airport concession contract by 30 years
• Upfront payment of 775 million dollars (€705 M) to the Dominican state and total CAPEX commitment (works) of 830 million dollars (€755 M) until the end of the extended concession
• Continued VINCI Airports’ support to the country’s tourism industry and environmental transition

VINCI Airports, concessionaire of 6 airports⁽¹⁾ in the Dominican Republic since 2016 through its subsidiary Aerodom, has just been granted by the Government of the Dominican Republic a 30-year extension of its concession contract, originally scheduled for 2030.

Under the extended concession contract, from 2030 to 2060, VINCI Airports will be responsible for financing, operating, maintaining, developing and upgrading the modernization of the airports under concession. VINCI Airports will notably build and operate a new passenger terminal at Santo Domingo airport and continue to implement its environmental action plan, including expansion of solar power plants and deployment of wastewater treatment plant as well as waste sorting centers.

An upfront payment of 775 million dollars (300 million dollars immediately (€273 M) and 475 million dollars (€432 M) at financial close in H1 2024) will be made by Aerodom to the Dominican state, while the company will also invest 830 million dollars (€755 M) in the airports’ infrastructure throughout the concession period, including 250 million dollars (€227 M) for the new terminal to be built in Santo Domingo.

The long-term extension confirms the success of the first airport concession in the Dominican Republic: modernizing the passenger terminals, opened a new cargo terminal in Santo Domingo in 2020 and developed several solar plants totaling 7.5 MWc to decarbonize airports’ operations.

Since Aerodom joined VINCI Airports’ network, traffic at its Dominican airports has grown by 6% per year between 2016 and 2019 and reached, from January to November 2023, +17% of 2019 level for the same period. In 2022, Aerodom contribution to VINCI revenue and Ebitda was 191 million euros and 161 million euros, respectively (84.5% Ebitda margin).

⁽¹⁾ The airport of the capital Santo Domingo, the international airports of Puerto Plata, Samaná, La Isabela and Barahona, and the national airport of Arroyo Barril.

 

About VINCI
VINCI is a global player in concessions, energy and construction, employing 280,000 people in more than 120 countries. We design, finance, build and operate infrastructure and facilities that help improve daily life and mobility for all. Because we believe in all-round performance, we are committed to operating in an environmentally, socially responsible and ethical manner. And because our projects are in the public interest, we consider that reaching out to all our stakeholders and engaging in dialogue with them is essential in the conduct of our business activities. Based on that approach, VINCI’s ambition is to create long-term value for its customers, shareholders, employees, partners and society in general.