Year In Review

Africa • Year in Review • 2018

Kenya – Dec 22/18 – Kenya Airlines Proposal for Operations of Nairobi Airport Refloated

The Kenya Airlines (KQ) on-again, off-again proposal to take over operation of Nairobi’s Jomo Kenyatta Int’l Airport (JKIA) appears to be back on again. Kenya Airports Authority (KAA) confirms receipt of KQ’s application to manage JKIA. The proposal, which was floated and then later shelved earlier in the year, has gained renewed momentum. The proposal, structured under the country’s Public Private Partnership Act, is under KAA review to assess feasibility and commercial terms.

Zambia – Nov 11/18 – New International Airport Planned for Itezhi Tezhi as P3

A new international airport in Itezhi Tezhi, to be developed under a P3 format, has received cabinet approval. Targeted to support the growing regional tourism sector, the new airport will serve Kafue National Park, in conjunction hotel development in nearby Chitambo.

Angola – Sep 29/18 – Angola’s Government to Seek Private Sector Operator for its New Capital City Airport

Speaking at the Angola-US Business Forum in New York, Angola’s President recently announced his government’s plans to operate the country’s new capital airport, João Lourenço Int’l, under a PPP Build-Operate-Transfer scheme. The greenfield airport, under construction since 2004 by Chinese contractors and beset with delays, is expected to be completed in 2019.

Namibia – Jun 24/18 – Acrimony & Accusations Snarl Namibian Airport Development Projects

Amid acrimony, accusations and counter-claims between competing Chinese and Turkish bidders, the Ondangwa Airport upgrade project finds itself mired in a court challenge over purported collusion between a senior project executive and a Chinese bidder. The accused Chinese company has, in turn, filed a counter-claim alleging a Turkish company bribed the new airport board. The controversy has also reportedly led to termination of the tender for development of Hosea Kutako Airport.

Kenya – Jun 15/18 – Kenya Air Poised to Assume Operation & Management of Nairobi Airport

Nairobi’s Jomo Kenyatta Int’l Airport (NJKIA) appears set to be handed over to Kenya Airways for management and operation under a 30-year concession contract through a separate holding company. The reported deal provides for all of NJKIA’s personnel to be transferred from the Kenya Airports Authority to the new holding company.

Namibia – May 05/18 – World Bank Recommends PPP Model for Namibia’s Hosea Kutako & Eros Airports

A recent World Bank report has counseled the Namibian government to structure the planned upgrade/expansion of Hosea Kutako Int’l Airport under a Public Private Partnership (PPP). Per World Bank estimates, the required investments for required terminal and runway upgrades range from US$200-400m. The report also recommends a PPP approach for Eros airport.

Zimbabwe – Apr 25/18 – Private Sector Finance Considered for Modernization of Zimbabwe’s Airport Network   

The government of Zimbabwe is reported to be seeking financial advisors to assist in the capital raising for various critical infrastructure projects across the country, including airports. The county’s eight airports have seen very little in the way of capital investment over the past decade, or so, due to scarcity of public funds. A range of instruments are being considered including bonds and debt, as well as various PPP structures.

Nigeria – Apr 21/16 – Nigeria Looks to Reform its Legislative Framework in Bid to Attract Private Sector Capital

In a drive to attract private sector investment and expertise to its burgeoning and underbuilt airport infrastructure, the Nigerian government is taking steps to enact enabling legislation and provide necessary investor security to bring private capital to the table.  The move comes on the heels of critics warning that Nigeria’s PPP ambitions will not get off the ground until international investors have the confidence that agreements and the rule of law will be respected.