Global Market Updates

Airport Operators & Concessions • Global Market Update • January 2017

January 2017

United Kingdom – Dec 23/15 – Belfast City Shares Transfer to 3i Group

Multi-national private equity and venture capital firm 3i Group, based in London, recently announced plans to set up a new £700m investment portfolio to facilitate consolidation of assets from Eiser, including Belfast City Airport. The move will see 3i investing ~£36m into the new investment vehicle, alongside APG and ATP.

Myanmar – Dec 22/16 – Myanmar’s Hanthawaddy On Track for 2020 Opening

The consortium including Incheon Airport and four other South Korean investors is forging ahead with the USD$1.1b Hanthawaddy International Airport project which will serve as the Myanmar’s principal international port of entry upon completion. Targeted for opening by 2020, all international traffic from nearby Yangon airport will be relocated to the new greenfield facility, which will operate under a 50 year PPP framework.

Moldova – Dec 14/16 – Moldova’s  Chișinău Thriving Despite Controversy

Chișinău, Moldova’s primary airport, is undergoing significant investment and traffic growth (up 68% since 2013), buoyed by Moldova’s sign-on to the Single European Sky in 2012. Despite allegations by political opponents of corruption connected to the 49-year concession contract awarded to Russian-controlled firm Avia Invest, Chișinău is poised for continued growth.

Serbia – Dec 11/16 – Serbia Reaffirms Plan to Concession Belgrade Airport

Serbia recently reiterated its commitment to attract private sector investment to Nikola Tesla Airport in Belgrade via a 25-year concession, which is expected to generate Є350-400m in up-front fees and annual payments of Є10+m. The airport company Aerodrom Nikola Tesla, of which the gov’t hold 83.1%, is forecast to post a Є20+m profit in 2016 up ~20% from previous year.

Indonesia – Dec 09/16 – Indonesia Eyes Private-sector for Two Airports

Indonesia is reportedly contemplating private sector management of two airports as a formative step toward development and modernization of its transportation infrastructure. Based on its 2015-19 national development plan, the government intends to invest USD135m in the sector, with Sepinggan and Kualanamu airports initially eyed for private sector involvement.

Solomon Islands – Dec 08/16 – Solomon Islands Considers PPP Model for Airports

The second phase of the Munda airport’s expansion is set to kick-off in early 2017. The government is also considering development of other airports in the country via Public Private Partnership and State Owned Enterprise models.

Philippines – Dec 05/16 – Terminal Development at Boracay Forges Ahead

Built to absorb projected growth in traffic, the interim terminal at Boracay Airport in Caticlan is expected to be complete by year-end according to San Miguel Corporation. A permanent 12-gate international is also reported to be in the works.

Russia – Dec 04/16 – Vladivostok Shares to be Traded

An investor group comprised of the Russian Direct Investment Fund, Russia’s Basic Element and Changi Airports have reached an agreement for acquisition of shares in Vladivostok Airport from Sheremetyevo Airport. Subject to regulatory and corporate approvals, the group will control 100% of the terminal operating company and 52.16% airport operating company.

United Kingdom – Dec 03/16 – Gatwick Launches Biggest CAPEX Program Ever

Driven by strong traffic growth including a current-year passenger rise of 6% (long-haul routes and North Atlantic routes), Gatwick passengers volumes have grown 21% and 40% respectively year-to-date. Gatwick has unveiled plans for a £1.2b capital investment program over the next five years, including £250m in improvements in 2017. Expansion of the North and South terminals have already been launched, along with development of additional parking and a refit of the railway station.

Turkey – Dec 01/16 – Turkey Plans Seven New Airports

Supporting the Turkish government’s “One Airport Every 100 Kilometers” initiative, Ankara recently announced plans to construct seven new airports across the country, including Rize-Artvin, Niğde-Aksaray, Karaman, İzmir, Yozgat Bayburt-Gümüşhane (Salyazı) and western Antalya. In parallel, the government set the groundwork for PPP alternative finance models.