[Report] "Cusco's Best Job Creation"... Visiting the New Chinchero Airport Construction Site in Peru

Chinche-ro New Airport Main Construction Groundbreaking Ceremony Successfully Held
Direct and Indirect Employment Creation Effect of 1 Million People
New Gateway to Machu Picchu Realized with Our Technology
Opposition from Environmental Groups on Cultural Heritage Protection Remains a Challenge

On the 19th, officials participating in the groundbreaking ceremony for the main construction at the new Cusco Chinchero International Airport construction site in Chinchero City, Cusco Province, Peru, are inspecting the site. Currently, the Chinchero New International Airport shows a site preparation progress rate of over 30%. / Photo by Airport Photographers Group

[Cusco (Peru) = Asia Economy Reporter Dongwoo Lee] “The Chinchero New Airport construction project will create over one million jobs and serve as an opportunity to improve the quality of life for Cusco residents and enhance international tourism capital.”

At the 'Chinchero New Airport Main Construction Groundbreaking Ceremony' held on the 19th (local time) at the Cusco provincial government office in Peru, Juan Francisco Silva Villegas, Minister of Transport and Communications of Peru, said this. When he emphasized the groundbreaking ceremony as a "festival day for the people of Cusco," local Peruvian dignitaries attending the event applauded and shouted "Cusco" together.

The Chinchero New Airport construction project was realized in 2019 with full support from both Korea and Peru. The Chinchero New Airport, which will become a new gateway to Machu Picchu, the ancient site of the Inca civilization in Peru, is the first case where a domestic company oversees both the overall project management and construction of an overseas airport.

Peru has long aspired for 40 years to build a Latin American hub airport to replace the aging Velasco Astete Airport, which has served as the gateway to Machu Picchu. Korea viewed the Chinchero New Airport project as a major stage to showcase the overseas airport construction technology of domestic companies worldwide and enhance international competitiveness in construction orders.

The event was attended by Son Chang-wan, President of Korea Airports Corporation; Joo Jong-wan, Director of Airport Policy at the Ministry of Land, Infrastructure and Transport; Kim Ki-jung, Head of KOTRA Latin America Regional Headquarters; and Yoon Young-jun, President of Hyundai Engineering & Construction, the main contractor for the construction. On the Peruvian government side, key figures including Minister Juan Francisco of Transport and Communications and Cusco Governor Jean Paul Benavente Garcia attended in large numbers, raising the event's enthusiasm.

Despite COVID-19 setbacks, progress rate of 31.9% ahead of schedule

The groundbreaking ceremony continued at the Chinchero airport construction site located at an altitude of 3,700 meters. The new airport is about 15 km northwest of Cusco. The Peruvian government plans to complete and open the airport by 2025 on a total land area of 4.46 million square meters?about 1.5 times the size of Yeouido, mostly pasture and farmland?with a 4,000-meter runway, one terminal building with 13 boarding gates, and 13 aprons. The Chinchero New Airport is expected to serve 5.7 million passengers annually, more than three times the current Velasco Astete Airport.

The groundbreaking ceremony marked a significant milestone as the official first step in the new airport's construction. Following the earthwork that began in April this year, construction of the passenger terminal, control tower, and other facilities is now in full swing.

As of September, the earthwork progress rate was 31.9%, 3.0 percentage points ahead of the original plan of 28.9%. The earthwork period runs concurrently with the main construction from April 2021 to July 2023. A Hyundai Engineering & Construction official involved in the Chinchero New Airport project said, “Although there were some setbacks in the early stages due to COVID-19, collaboration with the Peruvian Ministry of Transport and Communications accelerated the selection of the construction contractor and other processes, resulting in increased progress.”

At the site of the groundbreaking ceremony, excavators were busy with embankment work, and large trucks were transporting soil. The work involves moving soil from higher to lower ground to level the site. PVD (Prefabricated Vertical Drain) method work to compress soft clay soil was also underway in various parts of the site. The project involves about 340 pieces of equipment and 1,600 personnel annually. Twenty-four white tent camps were set up near the site, where Korean workers dispatched from Korea and local workers reside and focus on construction.

Hiring local workers has significantly contributed to employment in Cusco. Kim Bong-gi, Director of HanmiGlobal, one of the PMO (Project Management Office) contractors for the Chinchero New Airport, said, “We have mandated that more than 15% of all workers be hired locally by the construction company. The labor and economic creation is at the highest level within Cusco.”

Korea Airports Corporation and the Ministry of Land, Infrastructure and Transport held a groundbreaking ceremony on the 19th (local time) for the construction of a new airport in Chinchero City, Cusco Province, the gateway to Machu Picchu, a world-renowned tourist destination in Peru. The ceremony was attended by Juan Francisco Silva Villegas, Minister of Transport and Communications of Peru; Jean Paul Benavente Garcia, Governor of Cusco Province; Son Chang-wan, President of Korea Airports Corporation; Joo Jong-wan, Director of Airport Policy at the Ministry of Land, Infrastructure and Transport; and representatives from Hyundai Engineering & Construction and Dohwa Engineering. The photo shows the Chinchero Airport site where earthworks, the ground stabilization work, are underway prior to the main construction. Photo by Airport Photographers Group

A Korean-style airport rising in the Inca civilization... opposition from some environmental groups remains a challenge

The Chinchero New Airport symbolizes a Korean-style airport built with our technology in the land of the Inca civilization.

To win the new airport project, a consortium of domestic companies led by Korea Airports Corporation, including Dohwa, Geonwon, and HanmiGlobal, was formed in 2019 to secure the PMO contract, marking the start of the project. This is the first time a domestic company has been selected as PMO for overseas airport construction.

The PMO manages the entire project on behalf of the client, including design review, selection of contractors and supervisors, technical support, and commissioning. The service fee is about 35 billion KRW. In March, Hyundai Engineering & Construction led a consortium with Peruvian companies to win a 160 billion KRW land development contract, and in August, Hyundai Engineering & Construction led a consortium with companies from Peru, Mexico, and China to secure the 540 billion KRW main construction contract.

The construction of a new airport in Cusco, which the Peruvian government has pursued since the early 1980s, is now realized with Korean technology after 40 years. Cusco residents also expect the new airport construction to be a significant turning point for the economic growth of the surrounding area.

A Korean restaurant owner who has operated in Cusco since 2008 said, “The number of visitors to Cusco has significantly decreased since the COVID pandemic. I hope the construction of the Chinchero New Airport will increase the number of visitors here.”

However, opposition from some environmental groups against the new airport construction remains a challenge to be resolved. In fact, environmental groups in Peru have petitioned the regional court, claiming that the Chinchero Airport damages Cusco’s water supply, natural environment, and cultural heritage, demanding the cancellation of the construction.

In response, a Hyundai Engineering & Construction official said, “The area around the new airport is a cultural heritage protection zone, and archaeological consultation was conducted before starting construction. As the contractor, we will actively cooperate with the Peruvian government regarding this matter.”

Korea Airports Corporation and the Ministry of Land, Infrastructure and Transport held a groundbreaking ceremony on the 19th (local time) for the construction of a new airport in Chinchero City, Cusco Province, the gateway to Machu Picchu, a world-renowned tourist destination in Peru. On this day, officials from Korea and Peru are cutting the ribbon at the groundbreaking ceremony. From the second left: Luis Alberto Urubamba, Mayor; Cho Young-jun, Ambassador to Peru; Son Chang-wan, President of KAC. Roberto Sanchez, Minister of Tourism and Commerce of Peru; Yoon Young-jun, President of Hyundai Construction; Joo Jong-wan, Airport Policy Officer of the Ministry of Land, Infrastructure and Transport; Kim Yong-gu (third from the right), President of Dohwa Engineering. /Photo by Airport Photographers Group

This content was produced with the assistance of AI translation services.