Identifier
Created
Classification
Origin
08SANTODOMINGO141
2008-01-29 13:10:00
CONFIDENTIAL
Embassy Santo Domingo
Cable title:  

U.S. CONSORTIUM TO BUY DOMINICAN AIRPORT

Tags:  ECON EAIR EINV DR 
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VZCZCXYZ0025
RR RUEHWEB

DE RUEHDG #0141 0291310
ZNY CCCCC ZZH
R 291310Z JAN 08
FM AMEMBASSY SANTO DOMINGO
TO RUEHC/SECSTATE WASHDC 0040
INFO RUCPDOC/USDOC WASHDC 1726
C O N F I D E N T I A L SANTO DOMINGO 000141 

SIPDIS

SIPDIS

DEPT FOR WHA/CBA

E.O. 12958: DECL: 01/24/2018
TAGS: ECON EAIR EINV DR
SUBJECT: U.S. CONSORTIUM TO BUY DOMINICAN AIRPORT
MANAGEMENT CONCESSION

Classified By: Danial Bellegarde for reason 1.4 b

C O N F I D E N T I A L SANTO DOMINGO 000141

SIPDIS

SIPDIS

DEPT FOR WHA/CBA

E.O. 12958: DECL: 01/24/2018
TAGS: ECON EAIR EINV DR
SUBJECT: U.S. CONSORTIUM TO BUY DOMINICAN AIRPORT
MANAGEMENT CONCESSION

Classified By: Danial Bellegarde for reason 1.4 b


1. (C) The operations manager for Aerodom (Dominican Airports
International 21st Century),which manages the airport
operations concessions for six of the Dominican Republic's
eight international airports, including Las Americas
International Airport in Santo Domingo, confidentially
informed ECONOFF that a deal has been agreed to with an
unidentified U.S. private equity company to purchase a
majority shareholding in the company. The operations
manager, Andrew O'Brian, is employed by Canada's Vancouver
Airport Authority, which manages over 21 airports worldwide
and is a minority shareholder in the concession holding.
Aerodom has leveraged World Bank International Finance
Corporation financing for modernization projects and is
currently operating with an excellent balance sheet. The
deal is expected to be announced as early as next month, but
is still pending the purchaser's accessing of third party
financing, likely through U.S. financial institutions such as
Citigroup or ING's Investment Management Americas according
to O'Brian. The prime shareholder and president of the
company is Abraham Hazouri, a wealthy Dominican businessman.
The deal is expected to be worth several multiples of the
company's current annual revenues of approximately $70
million, but the final settlement amount was not disclosed.


2. (C) Comment: If the deal goes through, which O'Brian
believes is 90 percent certain, it will represent a
significant U.S. investment in the Dominican Republic.
Aerodom, under the management of Vancouver Airport Authority,
has been credited with putting into place significant
infrastructure developments (e.g., remodeling Las Americas
Airport and opening a new airport in the Samana penisula) as
well as more accountable proceedures and facilities for the
processing of passengers through customs and immigration.
Approximately 500,000 American citizens transit the six
airports under Aerodom's control on an annual basis. Aerodom
has also been a key partner of the Dominican Airport Security
Agency, known as CESA, as well as the U.S. Transportation
Security Administration, in bolstering security protocols in
line with International Civil Aviation Organization
standards. The presence of a large U.S. investor is likely
to add additional weight to these efforts as well as
continuity of service as Vancouver Airport Authority is
expected to maintain its role as the management operator.
End comment.
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