Announcement of Twenty-Five Million US Dollars Loan to Mexico for Airports Development on June 10, 1974

INTERNATIONAL BANK FOR • f~ECONSTRUCTJON AND DEVELOPMENT 1818 H STREET, N.W., WASHINGT001 D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 74/47 Subject: $25.0 million loan to Mexico for airports June 10, 1974 development The World Bank has approved a loan of $25.0 million equivalent to help finance a project for airports development in Mexico. This is the first Bank loan for aviation in Mexico, and the eleventh for the transport sector. The project is part of a national plan for the construction. and improvement of airports. The topography of the country has been an important factor in the rapid growth of domestic aviation as it has made air transport one of the fastest growing modes of passenger traffic in Mexico. The building of a strong domestic air network is of primary importance due to the rapid increase in this type of traffic, based on population and income growth, and on the Government's efforts to promote a balanced regional development. In the 1962-72 period, passenger traffic on the two largest Mexican airlines rose from one billion to 4:5 billion passenger-km per year, and it is expected to continue its steady growth. The project being supported by the Bank includes the construction of seven • regional airports: three in the southeast region of the country -- Villahermosa (State of Tabasco), and Tuxtla Gm:ierrez and Tapachula (Chiapas); two on the west coast --- Los Mochis (Sinaloa) and Guayrnas (Sonora); and two in the State of Veracruz, on the east coast -- Minatitlan and Poza Rica. At the airport of Campeche, capital city of the State of Campeche, the runway will be extended to permit jet landings, and its terminal building will be expanded. Works to be carried out in the seven new airports will consist of runways, lead-in taxiways, aircraft aprons, terminal buildings, control towers, fire stations, fueling systems, electronic and visual aids, and access roads. The Directorate General of Airports, an agency in the Secretariat of Public Works, will be responsible for the execution of most of the project except for the installation of navigational aids and communications equipment which will be carried out by the Secretariat of Communications and Transport. The Secretariat of Public Works will administer construction contracts for the relocation of an elementary school at the site of the new airport at Matitlan, of an existing gas pipeline crossing the proposed airport at Villahermosa, and of a high-tension power line skirting the existing runway at Campeche. The loan is being made to Nacional Financiera, S.A., with the guarantee of the United Mexican States, for a term of 24 years, including four years of grace, with interest at 7-1/4% per annum . • Note: Honey figures are expressed in US dollar equivalents. 0  June 10, 1974 • TECHNICAL DATA PROJECT: Airports development COUNTRY: Mexico TOTAL COST: $63.3 million BANK FINANCING: $25.0 million, 24 years, 4 years of grace, at 7-1/4% interest per annum. OTHER FINANCING: Government budgetary contribution, $38.3 million. IMPLEMENTING ORGANIZATIONS: Directorate General of Airpprts, Secretariat of Public Works, Avenida Universidad y Xola, Mexico 12, D.F., Mexico, for project works and contract management; and Directorate General of Civil Aeronautics, Secretariat of Conununications and Transport, Avenida Universidad y Xola, Mexico 12, D.F., Mexico, for supervision of navigational aids and communications equipment • installation. PROJECT DEf~RIPTION: Construction of seven airports to replace existing ones: Villahermosa, Tabasco; Tuxtla Gutierrez, Chiapas; Tapachula, Chiapas; Los Mochis, Sinaloa; Guaymas, Sonora; Minatitlan, Veracruz; and Poza Rica, Veracruz. Also, expansion of the Campeche, state of Campeche airport; and design and· implementation of a new accounting .system for the Airport and Auxiliary Services, a public enterprise. PROCUREMENT: All contracts except some of the elect~onic equipment will be awarded through international competitive bidding. CONSULTANTS: None. ESTIMATED COMPLETION DATE: 1977. Note: Money figures are expressed in US dollar equivalents. •