Ecuador: Plans To Begin Talks On New Airport Next Week

The mayor of Quito, Augusto Barrera, plans to begin talks to renegotiate a contract held by Corporacion Quiport SA, a company that is constructing a new international airport for Quito, next week.

At a press conference, Barrera said Tuesday that the talks will begin Oct. 13 with representatives of Corporacion Quiport SA, which consists of the Canadian Commercial Corp., The Aecon Group Inc. (AEGXF), ABC Development Company, the Houston Airport System and Andrade Gutierrez Concessoes SA (ANDG4B.SM) of Brazil.

Critics of the project, including President Rafael Correa, have said that the planned new airport will be too costly.

Last July, Ecuador's Constitutional Court issued a ruling regarding airport charges and services. The ruling said airport revenue belongs to the public and not private sector.

Aecom has said that the Court decision may have an impact on its concession interests in Quito.

The new airport will cost $600 million and is expected to be done by mid-October 2010.

Quiport says it has invested $360 million up to now and that the work is 60% completed.

Aecon has a 45.5% economic interest in the Quito airport concession through its stake in Quiport.

Barrera has said his office wants to renegotiate the terms of the contract related to safety and financing to win improved conditions for the city.

-By Mercedes Alvaro, Dow Jones Newswires; 5939-9728-653; [e-mail]