Denver Approves $1.8B P3 Contract for Airport

August 16, 2017

The Denver City Council approved a public-private partnership project to redesign the Jeppesen Terminal of Denver International Airport (DEN) on Tuesday.

The 157-page agreement between the airport and Ferrovial's Great Hall Partners (available here) covers both the construction and operating of the airport's Main Hall for 34 years. Great Hall Partners includes equity partner JLC Infrastructure, an investment fund started by former NBA star Magic Johnson and Loop Capital.

The contract includes an up-front cost split with Ferrovials on the set-price $650 million renovation, with DIA paying for 74 percent. The airport will also be responsible for a contingency fund covering up to $120 million in large unforeseen construction and design costs.

Ferrovial and Saunders Construction will work together in the next four years on the, after which Great Hall Partners will manage concessions in the terminal. Revenue from the concessions will be split - 20 percent for Ferrovial, 80 percent for the airport.

Ferrovial is part of an international conglomerate that operates four airports in Great Britain and other global infrastructure concerns.