Kuntur Wasi, a consortium formed by Peru's Andino Investment Holding and Argentina's Corporacion America, has won a contract to build a new international airport in the town of Chinchero, Cuzco, Peru.
The new airport, which will be built with an investment of up to $658m, is expected to attract global tourists to Peru's popular Machu Picchu ruins.
The airport will be capable of handling around five million passengers per year initially and is expected to increase its capacity to eight million in the future.
Kuntur Wasi will invest 53% of the total expenditure of the project, while the government will pay the remaining amount, according to Peru's Transport and Communication Minister Carlos Paredes.
Kuntur Wasi won the contract with a bid of $264.7m, beating out two other bidders including the Aeroportuario Imperial consortium and the Aeropuerto Chinchero consortium.
Under the deal, the consortium will design, build, finance, operate and maintain the airport in a 40-year public-private concession.
Andino Investment Holding CEO Carlos Vargas was quoted by the RPP Noticias as saying, "The expectations are great because we're going to give Peru an airport that will promote investment and tourism."
Spread over an area of 40,000m², the new airport will replace the current Alejandro Velasco Astete air terminal, which serves tourists visiting the city of Cuzco and the nearby Inca citadel of Machu Picchu.
The new airport will have links to destinations in South American countries including Argentina, Ecuador and Chile, according to Vargas.
The construction of the airport is slated to begin by 2016 and is expected to be completed in five years.
In 2010, the Kuntur Wasi consortium won concessions for airports in six southern Peruvian regions, including Apurimac, Ayacucho, Puno, Madre de Dios, Arequipa and Tacna.