"Group signs deals worth US$20 million to expand Cambodian airports"

Monday, February 7, 2005

Group signs deals worth US$20 million to expand Cambodian airports
The Associated Press


PHNOM PENH, Cambodia - A French-Cambodian group which upgraded and manages
Cambodia's two main airports has signed a US$20 million (?15.6 million) deal
to expand their facilities, officials said Monday.

The funds will help finance expansion projects over the next three years at
Phnom Penh International Airport and at the airport serving the northwestern
province of Siem Reap, Societe Concessionnaire de l'Aeroport said in a
statement.

Siem Reap is home to the famed 9th-14th century ancient Buddhist and Hindu
temples of Angkor, which have become the cornerstone of Cambodia's tourism
industry, earning millions of dollars (euros) annually for the cash-strapped
government.

Two deals, each worth US$10 million (?7.8 million), were signed by the
Societe Concessionnaire de l'Aeroport with the International Finance Corp. _
the World Bank's private sector arm _ and the Societe de Promotion et de
Participation pour la Cooperation Economique, a subsidiary of the French
Development Agency.

Societe Concessionnaire de l'Aeroport holds a 25-year concession from the
Cambodian government to build and operate the two airports.

The company is 70 percent controlled by the French group Vinci Airports,
with the remaining 30 percent owned by Muhibbah Masteron (Cambodia) Co.
Ltd., a holding company owned by Muhibbah Engineering Berhad from Malaysia,
and two Cambodian businessmen.

On the Net:

Cambodia Airports: www.cambodia-airports.com

IFC: http://www.ifc.org

Societe de Promotion et de Participation pour la Cooperation Economique:
http://www.proparco.fr/en/index.asp


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