MURCIA GOVERNMENT LEFT TO FINANCE NEW AIRPORT

November 30, 2009

The regional government of Murcia has decided to come to the rescue of the New International Airport of Murcia, which is being built in Corvera, and was facing uncertainty due to financial strain.

The autonomous executive, after looking at various options, has chosen to back the new airport up to the sum of 200 million euros. To be able to authorise acting as a guarantor for the bank loan the ruling PP government of Murcia comunidad presented their budget plan to the regional assembly last Thursday.

The building work, which is being carried out by Sacyr Vallehermoso, who are partnered with Cajamurcia, CAM and Grupo Fuertes, slowed down a few months ago due to the failure to obtain a bank loan of 160 million euros, the sum needed to complete the building work, which began in July last year, and are well on the way to being finished.

The airport now looks set to be finished by the end of 2010, if all goes to plan and the money is handed out. Due to the huge financial risk the regional government is taking in guaranteeing this bank loan, they are imposing strict conditions on Sacyr Vallehermoso.

They have stated that the loan cannot exceed 200 million euros, and must take place within a month of the change in the law, which will come into force on January 1st 2010. The loan will have to be repaid two months after completion of the building work.

In the case that Sacyr Vallehermoso doesn’t repay the loan in the set time they will face very serious consequences, and will have to pay damages.

The PP issued this statement upon signing to be the guarantor of the loan: “La grave restricción del crédito derivada de la crisis financiera ha afectado al proyecto declarado Actuación de Interés Regional, Aeropuerto Internacional de la Región de Murcia, hasta el punto de que, si la concesionaria no cuenta con el respaldo expreso de la Comunidad Autónoma, no le resulta posible acceder a la financiación imprescindible para esa actuación,” which would roughly translate as, “The serious lack of credit possibilities which has resulted from the financial crisis has affected this project which has been declared of regional interest, the International Airport of the Region of Murcia, to the point that, if the contractor doesn’t have backing from the Autonomous Community, it will not be able to access the financial aid necessary for completion.