In particular, the amendment outlines when and how the government should hand over land needed for the expansion of Lima's Jorge Chavez International Airport.
Scheduled to begin in 2018, the $1.5 billion expansion programme will funded by Fraport-led concessionaire, LAP.
Development plans call for a second runway – to be built first – as well as a new state-of-the-art passenger terminal and other infrastructure to meet increasing traffic and to further enhance the customer experience at Lima Airport.
Peru’s capital city airport welcomed 18.8 million passengers in 2016 and recorded double-digit growth of 10.1% year-on-year.
During the first half of 2017, the gateway served about 9.7 million passengers, an increase of 8.4% compared to the same period in the previous year.
Indeed, the airport registered a compound annual growth rate (CAGR) of 10.6% from 2001 through 2016.
When LAP took over operations in 2001, Lima Airport was handling around four million passengers per year – today LIM handles almost five times as much traffic.
Commenting on the agreement, Fraport AG executive board chairman, Dr. Stefan Schulte, said: “We thank the Peruvian government for reaching this landmark agreement with Lima Airport Partners.
"This step forward is critical for Lima Airport’s continuing success as a win-win concession for all.
"One of the most successful airports in Fraport’s global portfolio, Lima has consistently achieved strong growth, a high level of customer service and recognition, and it offers great potential for Peru and South America.”
The Peruvian Government granted Lima Airport Partners the concession for operating and expanding Lima Airport in November 2000. Officially commenced on February 14, 2001, the LAP concession now runs until 2041.
LAP’s shareholders include Fraport AG (70.01%), IFC International Financial Corporation (19.99%) and AC Capitales SAFI S.A. of Peru (10%).
During the first 16 years of the concession, LAP has paid out a total of about $1.9 billion in contributions to the Peruvian state, while total capital expenditures have reached $373 million.
Currently, Lima is served by about 35 airlines flying to 23 domestic and 46 international destinations.