Denver International (DEN) will move forward with a public-private partnership with a consortium led by Spain’s Ferrovial Group on a 30-year, $1.8 billion project to improve the airport’s Jeppesen Terminal.
The Denver City Council approved a measure early Tuesday morning that will award the P3 contract to Great Hall Partners, a partnership that includes Ferrovial Airports, Saunders Construction and JLC Infrastructure.
DEN said the plan calls for improvements to levels 5 and 6 within the 1.5 million-square-foot Jeppesen Terminal. The Great Hall project will relocate Transportation Security Administration screening checkpoints from level 5 to level 6, increasing passenger throughput by an estimated 50 to 70 percent. The project will include 34 automated screening lanes, increasing the throughput by an estimated total of 8,500 passengers per hour.
The project will make better utilization of airline ticket space, increasing check-in counter space. Plans also call for improvements to food and retail offerings in the terminal; creation of a new greeting area at the south end of the terminal; creation of a new international passenger welcome center with seating, food and retail options; and other upgrades.
“The Great Hall project is critically important to ensuring the safety and success of Denver International Airport for decades to come,” airport CEO Kim Day said. “Although DEN remains the country’s youngest commercial airport, no one could have predicted how security and technology would fundamentally change the aviation industry and passenger processing over the last two decades. By investing in this project, we will prepare DEN for the future: enhancing security, increasing capacity, updating aging systems and elevating the overall passenger experience.”
The anticipated cost to design and build the project will range from $650-$770 million, which includes an airport-added contingency of $120 million to accommodate unexpected issues or changes in TSA or airline processing in the next few years.
Great Hall Partners will make a total investment of $378 million and be paid back over time through a combination of payments from the airport and a 20 percent share of the concession revenues from new shops and restaurants.
DEN will also reimburse Great Hall Partners for operating and maintenance costs over the 30 years. DEN will keep 80 percent of the concessions revenue and 100 percent of other revenues derived from the terminal in spaces the airport will develop.
The total amount of the contract with Great Hall Partners, which includes design, construction, operations and maintenance for 30 years, is capped at $1.8 billion.