Changi Takes Stake In Alterra Partners

Alterra Partners was launched in June 2000 to develop, finance, construct, own, manage and operate airport projects and concessions throughout the world. Today, Alterra, through Bechtel Enterprises, has interests in airport concessions at London Luton, UK; San Jose, Costa Rica; and Lima, Peru and is currently pursuing airport prospects in various parts of the world.

"Singapore Changi airport is internationally recognized as one of the best managed airports in the world", said Jaime Guillen, president and CEO of Alterra. "Changi's substantial operations and concession management expertise will complement our development, financing engineering, construction and asset management experience, providing our customers with a full range of services to meet the challenges of the growing airport privatization market."

Changi Airport began operations in 1981 and has grown from 8 million passengers at that time to more than 28 million today. It has two terminals with a combined floor area of more than 560,000 sq. meters and has just commenced construction of a third terminal. In addition to its passenger volumes, Changi handled more than 173,000 aircraft movements in 2000 and 1.7 million tonnes of cargo. More than 60 airlines link Singapore Changi airport to nearly 150 cities in 50 countries worldwide. SCAE also has an equity interest in Auckland Airport in New Zealand.
"We are delighted to have this partnership with Bechtel Enterprises ", said Mr. Goh Chin Ee, CEO of SCAE. "The combined strength of our organizations will ensure that Alterra becomes a leader in the emerging airport development market".

According to industry statistics, airport passenger demand is expected to grow at a 4-5% annual rate through 2010. During this same period, airport infrastructure requirements will approach US$350 billion. Historically, airports have been state owned and operated monopolies. In the coming years, private sector participation in the aviation market is expected to increase dramatically, driven by increased air traffic, limited airport capacity, public sector budget constraints and deregulation.
"Having Changi as our partner in Alterra is a real plus and an extension of a business strategy we adopted in the 1980s", added Dan Chao, executive vice president and managing director of Bechtel Enterprises. "We build stand-alone infrastructure development companies with world-class partners and take ownership positions in projects and facilities, not just for the short term, but as a continuing partner in the economic life of the communities we serve".

About Alterra Partners

Alterra Partners brings together an internationally experienced management team and resources dedicated to the development, financing, investment, ownership, and operations and management of privatized airports and related infrastructure worldwide. The company also draws upon the extensive experience of its parent companies in financing, design and construction of aviation projects and long-term ownership and management of airport concessions to tailor total business solutions to specific regional aviation requirements. Alterra, formed last year and headquartered in London, is currently 50% owned by Bechtel Enterprises and 50% by Singapore Changi Airport Enterprise, a wholly owned subsidiary of the Civil Aviation Authority of Singapore

About Bechtel Enterprises

Bechtel Enterprises is the development, financing and ownership affiliate of Bechtel Group, Inc., a premier global engineer-constructor. It is a leader in the privatized infrastructure market with interests in the aviation, power generation, transportation, water and wastewater, and telecommunications sectors and is a partner in numerous world-class infrastructure development and technology companies. In the last decade alone, BechtelEnterprises has arranged or participated in more than US $23 billion in project financings. The Bechtel organization has been at the center of more than 80 airport infrastructure projects since the 1970's, providing a full array of planning, design and program management services. In 2000, Bechtel generated revenues exceeding US $ 14.3 billion.

About SCAE

Singapore Changi Airport Enterprise Pte Ltd. is a wholly owned subsidiary of the Civil Aviation Authority of Singapore, the owner, manager and developer of Singapore Changi Airport. SCAE provides consultancy services in airport engineering, management and operations, and has undertaken projects in China, India, the Philippines, Pakistan, Fiji and Seychelles. It also makes investments in airports outside Singapore.