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Machu Picchu Gateway Airport, constructing with Korean technology and knowledge
- Korean and Peruvian governments entered into an agreement for Peru Chinchero New Airport PMO Project (G2G)
□ The Ministry of Land, Infrastructure and Transport (“MOLIT”) (Minister Hyun-mee Kim) announced that on 25 Oct 2019 (Fri) (Peru Local Time, 24 Oct (Thu)), our government has entered into a G2G agreement with the Peruvian government for Chinchero New Airport PMO Project at Coricancha Temple, Cusco, Peru.
* PMO (Project Management Office): Overall Project Management including design review, designation of the constructor/supervisor, technology support and conducting a pilot operation, etc
□ In order to celebrate this momentous agreement, both governments held a signing ceremony attended by senior officers of each government. Also, many of the Peruvian people participated in the ceremony, which made the event more meaningful.
ㅇ On our side, MOLIT, the Director General for Airport and ANF Policies as well as KOTRA and other participating organizations such as Korea Airports Corporation, Dohwa Engineering, Kunwon Engineering and Hanmi Global etc. have participated in the signing ceremony.
ㅇ On the Peruvian government’s side, Mister of the Ministry of Transportation and Communication, the governor of Cusco, the mayor of Cusco and the mayor of Chinchero, etc. have participated in the signing ceremony.
□ Taebyung Kim, the Director General for Airport and ANF Policies of MOLIT congratulated the event in his congratulatory message at the signing ceremony by saying “since Korea and Peru established diplomatic relations with each other for the first time in 1963, we have become closer through warm brotherhood and cooperation over time” and “Today, this is such a momentous event as we can announce the commencement of Chinchero New Airport Project to all of the Peruvian people”
ㅇ In addition, he emphasized “Chinchero New Airport has a geographical advantage as it is in close proximity to a World Heritage, Machu Picchu, therefore, we expect that the Airport will play a crucial role in developing Peru’s tourism industry. Also, it will contribute to the creation of job opportunities and the development of the local economies as the construction of the New Airport will establish an economic bloc centered around the Airport.
ㅇ Finally, he mentioned “Korean companies will assist the Peruvian government and open the New Airport in 2024 without any delay, and promise that they will do their very best to make sure that culture, attractions and environmental values in Chinchero are strictly preserved in the course of building the Airport. Also, as this is a G2G agreement, the Korean government will provide as much support as possible for the successful completion of this project”
□ Chinchero New Airport PMO Project is a high value-added business in the infrastructure field, which involves the overall management of the business on behalf of the ordering organization (the Peruvian Ministry of Transportation and Communication) such as △ design review △ ordering construction works and managing the relevant contracts △ construction process and quality control △ conducting a pilot operation, etc. .
ㅇ The project is for a period of 5 years on a scale of approximately USD 30 millions (approx. KRW 35.4 billions), and the parties to the agreement are the Peruvian Ministry of Transportation and Communication, and KOTRA and Korea Airports Corporation in Korea and 4 Korean Consortium companies will conduct this project.
* Korea Airport Corporation: Conducting a pilot operation, inviting executives and staff members of the ordering organization to offer informative seminars, design review and management such as aerial lighting, etc.
Dohwa Engineering: The overall management of PMO project and risks and the management of civil engineering, design and construction
Kunwon Engineering: The management of design and construction, safety and quality guarantee management.
Hanmi Global: International supply (constructor, supervisor), contact management and the management of electricity, design and construction
□ The PMO Project agreement is the first G2G agreement in infrastructure field and an accomplishment achieved by the private and public (private companies + public corporations) sectors’ joint cooperation supported by Team Korea:
ㅇ It is expected that we can advertise the excellence of our technology to the world through the overall management of constructing a gateway airport for Machu Picchu, a global tourist attraction, and at the same time, this project will perform as the stepping-stone enabling us to advance to Central and South American markets.
ㅇ This project has significant importance as this is our first time to be accepted into the airport construction PMO market dominated by the developed countries in Europe or the U.S. and also we are trying new scope of work other than design & construction works usually performed in our traditional overseas construction market.
□ Taebyung Kim, the Director General for Airport and ANF Policies of MOLIT mentioned “in order to boost the creation of job opportunities in the private sector and to reinvigorate the overseas construction markets, we will continue to organize Team Korea onwards and actively support them so that the private and public organizations can obtain business opportunities jointly” and;.
ㅇ “We will do our best to successfully secure some anticipated projects based on a G2G agreement such as Poland New Airport Construction and Management Project”
□ On the other hand, construction of Chinchero New Airport will begin in April 2020 with an aim to open it in 2024, and it is designed to accommodate 5millions of passengers every year.
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