Lima Airport Partners (LAP) has signed a $450m financing agreement for airside development at Jorge Chávez International Airport in Lima, Peru.

The loan amount will be provided by four international banks, namely KfW IPEX-Bank, the Bank of Nova Scotia, Sumitomo Mitsui Banking (SMBC) and Banco Bilbao Vizcaya Argentaria.

The airside development programme includes building a 65m air traffic control (ATC) tower, a second 3,480m-long runway, 10km of taxiways and a 250ha advanced mid-field apron area to boost aircraft parking capacity.

The programme will deliver new operational facilities for fire and rescue services, surveillance systems, beacons and navigation aids among others.

Construction of the ATC tower and airfield buildings commenced in July and are scheduled to be completed late next year.

In the following weeks, construction of the new runaway will begin. It is expected to become operational by the end of 2022.

Once complete, the programme is expected to strengthen the capabilities of the Lima airport, which serves as a major hub for the South American market.

A part of Fraport Group, LAP is the airport’s operator.

Commenting on the financing, Fraport chief financial officer Dr Matthias Zieschang said: “This excellent transaction is of paramount significance for the development of Lima Airport. Secured in a very challenging environment, this financing agreement sends out a strong and positive signal about Lima Airport Partners and the entire Fraport Group.

“Furthermore, the transaction underscores the strong interest and demand from capital markets for financing well-managed airports that have a long-term and positive perspective such as Lima Airport Partners with its major South American hub airport.”