Korea Airports Corp. eyes deal to expand int'l airport in Laos

The Korea Times

The Korea Times

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Sat, September 23, 2023 | 07:23

Travel & Food

Korea Airports Corp. eyes deal to expand int'l airport in Laos

Posted : 2022-11-20 16:56

Updated : 2022-11-21 12:27

Hong Jum-peo, left, Korea Airports Corp.'s director in global business office and Thongvanh Sisouphakone, the director of Luang Prabang International Airport inspect the airport in the UNESCO World Heritage site on Thursday, local time in Luang Prabang, Laos. Newsis

By Lee Hae-rin

LUANG PRABANG ― Korea Airports Corp. (KAC), which operates 14 airports nationwide, seeks to sign a partnership with the government of Laos to develop and expand the international airport in Luang Prabang, a UNESCO World Heritage site, and enter the Southeast Asian market for airport management.

KAC announced the results of a third feasibility study on the expansion of Luang Prabang airport, Thursday (local time), with Laotian government officials and airport authorities. The company has conducted the feasibility study jointly with Dohwa Engineering since last December to stay ahead in an international bid for the public-private partnership (PPP) with the Laotian authorities.

The Laotian government and airport authorities seek a private partner in a 200 billion won ($150 million) project to expand and manage Luang Prabang airport for 50 years.

Since its establishment in 1998, Luang Prabang International Airport has been operated by the Lao Airport Authority, a sub-governmental organization under the Laotian Ministry of Public Works and Transport. It is an international entry point to the Southeast Asian city and offered regular flights to Chiang Mai, Bangkok, Hanoi, Jinghong, Chengdu, Siemreap, Singapore and Incheon before the COVID-19 pandemic.

Despite multiple attempts by the socialist country to renovate the state-run facility, the airport remains derelict and faces challenges to expansion due to the region's mountainous geography and decline in visitor numbers following a two-year border closure prompted by the pandemic.

A Korea Airports Corp. (KAC) official presents the company's plans to expand Luang Prabang International Airport to Laotian government officials and airport authorities, Thursday local time, at Luang Prabang airport, Laos. Joint Press Corp.

During a briefing on Thursday, KAC presented renovation and expansion plans to enable the airport to accommodate over 4.61 million passengers within decades. The figure is more than four times bigger than the current passenger capacity of 1.2 million.

Based on its 42-year experience in airport management and the results of the feasibility study, KAC proposed the remodeling and expansion of the airport's terminals and runways while constructing commercial facilities, including food courts and car rental counters. It also plans to build a 55,000-square-meter terminal to separate domestic and international passengers and boost efficiency.

KAC proposed the Korean Ministry of Land, Infrastructure and Transport's official development assistance to the surrounding region of the airport in Luang Prabang to boost the local economy and create synergy in sustainable airport development.

Laotian authorities showed positive responses to KAC's proposed plans.

Thongvanh Sisouphakone, the director of Luang Prabang airport who attended Thursday's meeting, said, "Luang Prabang airport has seen a vacancy in airport management and maintenance due to a decline in travel demand following the COVID-19 pandemic. We wish to see the airport's development with the help of KAC's management."

Bounkhong Soksavath from the Laotian Ministry of Public Works and Transport said, although the details of the KAC's development plan will need to be adjusted by the two parties, the Laotian authorities see the company's overall plan as a "rational solution" and agree with its proposal to expand and separate domestic and international terminals.

The Laotian government "hopes Korea's (airport management) technology will yield fruitful results in Luang Prabang," and promised to "fully support KAC" if the company wins the international bid for the partnership.

Hong Jum-peo, KAC's director of global business office, said the company seeks to propose a balanced development between the region's natural resources and tourism industry to form a partnership with the Laotian authorities.

Luang Prabang, located in northern Laos' mountainous regions along the Mekong River, is the country's second-largest city and former capital. The entire town is a UNESCO-designated World Heritage site and the city saw over a million tourists visit between January and September this year.

lhr@koreatimes.co.kr