Airport News

Puerto Rico's governor-elect on Tuesday pledged not to scuttle a USD$2.57 billion deal to privatise the island's Luis Muñoz Marín Airport, saying voiding a signed contract would hurt its credibility among international investors.

Governor-elect Alejandro García Padilla of the Popular Democratic Party campaigned against public private partnerships (PPPs), in which government assets are leased to private operators, unless such deals created public works that governments cannot afford to build.

García Padilla a week ago narrowly defeated Republican Governor Luis Fortuño of the New Progressive Party, who championed PPPs as a way to jump start Puerto Rico's long-stalled economy. Fortuño also cut government spending and laid off 30,000 government workers in austerity moves.

García Padilla's victory created doubts about the airport deal being completed and other parts of Fortuño's economic programme.

"There is a signed contract and I have to uphold the credibility of the Puerto Rican people before the world. I need the people who have come to invest to invest," García Padilla said in a video interview with the El Nuevo Dia newspaper.

García Padilla, who said he was working to prevent possible ratings downgrades of Puerto Rico's bonds, added: "What I won't allow is that this contract (to be) used to increase the costs of services for the public or to fire workers at the airport."

Fortuño's administration in July struck a 40-year deal worth USD$2.57 billion in cash and improvements with Aerostar Airport Holdings to operate the airport, the largest in the Caribbean. The deal is awaiting final approval from federal regulators.