Peru – Jan 31/17 – Peru Reaffirms Commitment to Cusco Project
Peru’s President Kuczynski recently reaffirmed his government’s commitment to the Cusco – Machu Picchu greenfield airport project, saving the country US$590m in government funding. Key contract addendums to the PPP deal are now signed, paving the way for the project to advance despite Congressional claims that the project is detrimental to the Peruvian State.
India – Jan 22/17 – Two Groups Step Away from Navi-Mumbai Bid
In a surprise turn, a few days prior to financial bid opening for the Navi Mumbai project, GMR and Tata have decided to step away from the project due to unattractive bid terms and concerns over project delivery and schedule challenges. The unexpected withdrawals leave only two contenders for the project; GVK/MIAL and Hiranandani/Zurich. Days later, CIDCO announced a two-week delay in the bid opening. Later in the month, VINCI revealed its plans to bid on the project.
United States – Jan 18/17 – Westchester FAA Privatization Application Filed
Local media reports that an application to privatize the Westchester County Airport under the Airport Privatization Pilot Program has been submitted to the FAA by Westchester County. If approved, the application could facilitate Oaktree Capital’s 40-year, USD$111m directly-negotiated deal with the County for management/development of the airport. In related news, the County has since launched an RFP for advisors to assist in putting the privatization opportunity out to market.
Australia – Jan 17/17 – New Sydney Airport, Up Two to Decades in the Making
The new Western Sydney Airport is expected to take nearly 20 years to fully build out at a cost of USD$20b. A further USD$100b of investment in “airport-city” related development and infrastructure is also anticipated. Sydney Airport Corp., operator of the existing Sydney Airport (SYD) holds right-of-first refusal for new airports within 100 km radius of SYD.
India – Jan 07/17 – Fairfax Hits Road-block in Purchase of BLR Shares
Canadian investment firm Fairfax’s plan to acquire GVK’s 33% share in Bengaluru International Airport (BIAL), has hit a regulatory road-block . Fairfax is having difficulty completing the USD$321m deal due to difficulties in the approval process.
Bulgaria – Jan. 06/17 – Plovdiv Airport Heading Back to Market
The outgoing Bulgarian government has initiated a retendering of the Plovdiv airport concession as it received no offers from the recent proposal call launched in March. The renewed market offering will be based on a 35-year concession term and fall under the new EU concession rules which came into effect this April.
Greece – Jan. 05/17 – Athens Reaches Agreement on 20-year Extension
The extension of the Athens International Airport concession looks to be a done deal. The 20-year tag-on will comes with a price tag of Є1.75b, including a Є580m initial down payment with the balance to be paid in annual installments over the term.
Japan – Jan 03/17 – Tokyu-led Partners Engineer Sendai Turn-around
Tokyu group and its partners, the new private operator of Sendai Airport, are expected to reduce operating losses to US$850,000 in their first fiscal year under privation management and operation, through cost cutting measures and increased passenger volumes. In the last fiscal prior to privatization the airport posted a US$9.3m loss.
Cambodia – Jan 02/17 – Chinese Firm Scoops Cambodian Airport Project
China’s Yunnan Investment Holdings Ltd. (YIHL) has been selected by the Cambodian government to build the new US$880m international airport for Siem Reap region. Meanwhile, the government is deliberating to determine compensation to be paid to Vinci, the operator of the existing Siem Reap airport, for early termination of the concession contract.
Brazil – Jan 01/17 – Rio’s Airport Concessionaire Granted a Reprieve
Riogaleão, the concessionaire for Rio’s Janeiro-Galeão International Airport, has been granted permission from the Brazilian government to remit overdue operating charges of nearly US$300m in monthly installments while Congress deliberates over legislation to provide relief for struggling infrastructure concessions impacted by the county’s prolonged economic downturn.