Julio Ernesto Gutiérrez Conte is the president of Aeropuertos Argentina 2000. When he takes his role as the company’s CEO, he asserts that the new Ezeiza Airport will be ready by 2012 and that the first phase of the refurbishment project will be formally opened by November of this year. He also says that AA2000 will issue securities. When he takes his role as an investor, he does not hide his interest in the acquisition of virtually one-half of Telecom Argentina. “We are interested. We have to wait and see
whether they want to sell.”
Finally, when he takes his role as a business leader, he is one of the few people who can talk with the presidential couple quite frequently. Then, he does not hesitate to disclose his position, “When you have a certain business position, you need to be near the power.”
A new airport was built in Uruguay. What can you tell me about Ezeiza?
Ezeiza involves a different process. We could renegotiate the concession contract only two years ago. Two things have happened to us. They are a short term for the initial contract and the crisis the country had to undergo while we were in the middle of the process. In Uruguay, we started with a new concession. We had funds when the crisis burst out.
Are you protected with funds for Ezeiza project?
AA2000 has funds. The project started in July. We have invested nearly $150 million. However, progress cannot be easily seen because all we have done so far are underground tasks.
When are you planning to complete the project?
The first phase will be ready by November. The second phase will be ready by the end of 2011, and the third one by November 2012. Then, we will have an airport with capacity to accommodate 22 million passengers a year.
Is all the financing required available?
Yes, funds are available for all the quarters of 2010. We are working on the issuance of negotiable papers to get the funds we will need in 2011.
When are you going to issue securities?
We will issue them in January or February. We have the approval for the project and the banks’ club has been established.
Is it in Argentina?
Yes, in Argentina. There will be domestic lending for Argentina.
Are you planning to acquire
Telecom?
We are just one of the interested parties. There are nearly 10
interested parties.
Who are they?
¡No way! I cannot give you their names…
Is the acquisition process moving ahead?
I have some doubts whether
Telecom Italia is willing to sell. The Italians were supposed to come a couple of weeks ago. However, they did not come at all. We do not know yet what they are going to do.
Are you making your headway in this process?
We are interested.
What does the research conducted by the Securities and Exchange Commission (SEC) reveal about the sale?
The SEC protects investors and that is fine. It does not concern us.
What is the current regulation like in your business sector?
AA2000 is one of the few companies that have successfully closed its renegotiation process. This gives the contract legal strength. Now the company has certain flexibility to adjust to the ups and downs in the economy.
Do you refer to the rate paid based on the actual turnover?
Yes, you are right. However, it is not just that. It has now more flexibility in terms of rates, charges, and even in terms of investment. There are certain variables that make it possible to rise charges and investment, or else pay lower rates and increase investment, or vice versa.
Does not it mean the elimination of the business risk?
No. That is not true. We have not eliminated the business risk. Instead, we eliminated the unpredictability resulting from external factors that distorted the relationship between us. The company was awarded the concession contract for an airport service whereby a company provides the capital, as well as its expertise and lending capacity, to create the infrastructure it then manages and from which it recovers the investment made through the implementation of charges and the collection of commercial revenues. This is why there is profitability. Why the State would define a contract that fails to foresee changes if there is unpredictability?
What do you think about the nationalization of Aerolíneas Argentinas?
Had not such action be taken, Aerolíneas Argentinas would have disappeared. Someone had to take control. Someone had to invest in what the private sector was neither able nor willing to invest. It was necessary to do that.
Do you coincide there were certain actions from the Government and the Unions that led to that?
Perhaps. However, such an inflexible system between the public and the private sector leads to a rupture.
Do you see an advance from the State?
I do not see the State is making any advance. To give you an example, Anses receives the investments previously held by private companies, namely the AFJP or private retirement funds. That really shocked me. I was not aware of the interference that some AFJP actually had in certain companies.
Nevertheless, each AFJP could not hold more than 5% in the shares of any company.
Yes, and yet, it was a significant equity sharing. When I speak with executives that have Anses among its shareholders, they say the State does not interfere in their companies. I do not think of this as a sketched strategy. I would rather say it appears as a direct consequence of the previous situation.
Therefore, you do not believe the State may have implemented a strategy to advance over the private sector. Am I correct?
No. If we analyze what has happened in the last eight years, we can find a clear explanation and foundation to understand what has been done in each case.
I could well tell you that you speak like that because AA2000 could actually benefit from the dollarization of its rates?
We had our rates frozen for ten years until we managed to renegotiate the contract.
Was that the reason for the dollarization?
Yes, that is true. However, just a portion was dollarized. Besides, we had to contribute capital for an amount nearly four times higher than the initial amount foreseen.
Is Aerolíneas up to date with payments?
It is making payments.
Even though it does not depend on you, are you aware that poor access to the airport is always mentioned as a priority in the users’ complaints?
We developed a railroad project to connect the city of Buenos Aires with Ezeiza and Jorge Newbery Domestic Airport or Aeroparque. It is a very complex service. It is something complex.
Is there a solution for that?
No. I cannot find a solution, at least not in the short term.
