Corvera Airport Building Works to Continue.

Corvera Airport - Loan Agreed

An agreement has been reached between financial institutions forming a syndicate to loan the 200 million euros required to complete  Corvera Airport and have it open by the end of next year.

Intervention by the President of the Region, Ramon Luis Valcarcel, has facilitated the agreement , which joins together the original investors, Sacyr- Vallehermoso, headed by Luis del Rivero who has a 65% stake in the company, Cajamurcia , Cambank and Grupo Fuertes, together with several smaller investors and brings them the 200 million needed courtesy of La Caixa, Espirito Santo, a Portugese bank, Dexia ( Netherlands) and the Instituo de Credito Official.

The regional government will guarantee the loan, with strict conditions attached which include the airport reverting to the region if the loans cannot be paid back within a 3 month window following the commencement of operations at the airport.

This harsh clause was attached to ensure that the region of Murcia was protected should the consortium fail to make the re-payments, the region gaining maximum protection as should this circumstance occur it has acquired an international airport at half the cost of building one itself.

It has been calculated that the airport should be financially viable operating at passenger levels of 2 million per annum, although it is anticipated that around 3 million people will use the airport annually.

It is estimated that 160 million euros will be needed to completely finish and fit out the airport ready for use, as the construction is already in an advanced stage, but 200 million has been agree as the size of the loan to allow for unforeseen expenses.

The existing consortium have already spent  80 million of its own funds, but had difficulty obtaining the credit required to complete the project due to the restrictions placed on lending by financial institutions as a result of the economic slowdown.

This is excellent news for those trying to sell property in the region and for the future of Murcia as an international tourist destination.

The completion of this airport will bring investment to the region, open up opportunity and create direct  employment  as well as indirect, via the commercial opportunities it creates.

For all of us as residents it is extra good news, cutting down journey times, opening up new routes, and enjoying all the events that increased tourism will fund for us all to partake in and enjoy.