Meridiam, Edgemoor team wins $1bn US airport PPP

Kansas City picked the group to build and finance a new terminal at its international hub.

A consortium including Edgemoor Infrastructure & Real Estate and Meridiam Infrastructure has won a tender to build and finance a $1 billion terminal at Kansas City International Airport.

The Kansas City International Selection Committee recommended the Edgemoor-Meridiam team over three other groups including AECOM, Jones Lang LaSalle and Burns & McDonnell. The four teams had been shortlisted from Kansas City’s 27 July deadline to submit proposals for how they would finance the construction of a single terminal at KCI, an airport that welcomed around 11 million passengers in 2016.

Other participants in the Edgemoor-Meridiam consortium include Clark Construction Group and The Weitz Company. Skidmore, Owings & Merrill (SOM) will serve as the lead architect, and Project Finance Advisory Limited (PFAL) will be the financial advisor.

The city first explored the idea of building a new terminal last year, but Mayor Sly James put the plan on hold due to public opposition. In May, Burns & McDonnell submitted a proposal to design, build and finance the new terminal, which was viewed favourably. However, after AECOM sent a letter expressing interest in competing for the project, an open solicitation process began on 30 May.

State and local governments are increasingly partnering with the private sector to help fund airport upgrades, which can be expensive and complicated projects. Investors consider the assets attractive opportunities that assure long-term cashflows. Some of the largest airports in the US have ongoing PPP projects – such as the $4 billion LaGuardia Airport development and the $5 billion Los Angeles International Airport modernisation.