Global Market Updates

Airport Operators & Concessions • Market Update • February 2016

United Arab Emirates - Jan 23/16 - UAE Eyes PPPs as Solution to Infrastructure Demands

With plunging oil prices squeezing gov’t revenues, UAE is looking to PPPs to build its next wave of infrastructure. Already in use within UAE’s road sector, this “alternative” PPP model could play a role in the US$32b expansion of Al Maktoum Airport.

Netherlands - Jan 21/16 - Maastricht Aachen Concession Goes to Global GSA 

Global GSA’s parent company, Trade Centre Global Investments, has been awarded a 10 year concession (with an extension option) to operate cargo airport Maastricht Aachen. A total three companies participated in bidding process.

Nigeria - Jan 18 - Industry Urges Nigeria to Embrace PPP Model

With the Federal Airports Authority of Nigeria acknowledging that most of the equipment and facilities at the country’s airports are obsolete, industry is voicing renewed calls for privatization. The government is being urged to adopt the PPP model for four major airports; Lagos, Abuja, Kano and Port Harcourt, as well as regionals in Asaba and Benue State.

India - Jan 16 - Navi-Mumbai & Goa Move Forward At Last

Following years of legal and political strife, India has pre-qualified four groups for the Navi-Mumbai project (including GVK and GMR). Also in India, the long-awaited RFP for the Goa-Mopa greenfield project was finally issued in early January with GVK and GMR again prequalifying with along with two other groups. Final offers are due around the end of the first quarter.

Serbia - Jan 15 - Serbian Gov’t Target 4th Quarter for BEG Privatization

The Serbian Prime Minister Aleksandar Vucic has stated that privatization of Belgrade's Nikola Tesla Airport could happen as early as the fourth quarter of this year, with an anticipated price tag of ~€500 million.

Brazil - Jan 12/16 - Brazilian Pension Funds Throw Invepar a Lifeline

Pension funds Previ, Petros and FUNCEF have thrown a lifeline to ~USD240m lifeline to GRU concession company Invepar, as it works on settling it debt. Meanwhile, OAS (a 25% shareholder in Invepar) is grappling with “judicial recovery” after being implicated in the Operation Lava Jet scandal - Canada’s Brookfield is reportedly organizing a ~USD120m rescue package.

France - Jan 08/16 - Nice & Lyon Airports Readied for Market

The highly anticipated trade sales of Nice Cote d'Azur and Lyon-Saint-Exupery airports are expected to be set in motion in early February. Sovereign wealth and pension funds, as well as the familiar cast of airport operators, are already lining up. The French government will be selling its 60% stakes in both airports - Nice is valued at €1.5b, while Lyon is estimated at €900m.

Saudi Arabia - Jan 06/16 - Saudi Plans Major Airport Privatization Initiative

Saudi’s General Authority of Civil Aviation (GACA) announced its plans for a “vigorous privatization program” beginning with King Khaled Int’l Airport - Riyadh in the first quarter of 2016. GACA has also signaled that the privatization of Jeddah and Dammam airports are targeted for 2017, with domestic and local airports expected to follow between 2018 and 2020.

Jamaica - Jan 02/16 - Kingston Yields No Bids, but Gov’t Vows “No Fire Sale”

The bidding process for Jamaica’s Norman Manley Int’l Airport in Kingston, which closed on Dec. 30, 2015, has yielded no offers. The project’s Enterprise Team reported that the bidding process was robust - with support provided by the Int’l Finance Corporation, the process attracted and prequalified five consortia. Potential bidders cited significant capital investment and the concession fee structure as key stumbling blocks. The government is assessing options but insists there will be no fire sale.

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