Airports provide access to and interlink regional, national and international markets. This makes investment in existing or new airport infrastructure essential to economic development. Traditionally, airports were owned, managed and operated by governments but there has been a worldwide trend towards private sector involvement with varying degrees of private ownership and responsibilities, including the use of public-private partnership (PPP) models.
Find below a checklist that highlights the key legal issues that need to be considered in relation to airport concessions, sample airport concessions and reading materials related to PPP airport projects:
Checklist Airport BOT & Concession Agreement
- Checklist of legal issues to consider when developing airport Build-Operate-Transfer (BOT) or concession agreements: This checklist highlights the key legal issues that need to be considered in relation to airport concession agreements (assuming single site airport projects), covering both due diligence issues regarding the host country’s laws, as well as commercial and regulatory considerations.
Sample Concession Agreements
- Concession Agreement: Daniel Oduber Quirós International Airport's New Passenger Terminal (document in Spanish with summary of key features in English) - Concession agreement for the design, construction, operation and maintenance of a new passenger terminal of the Daniel Oduber Quirós Airport, entered into by and between the Government of Costa Rica, Coriport S.A. and the Coriport Consortium. The concession agreement is based on the Ley General de Concesión de Obras Públicas con Servicios Públicos (Concession of Public Work with Public Services).
The Government of India has developed new airports or modernized existing airports in several cities on a PPP basis:
Delhi, India: Operation, Management and Development Agreement between the Government of India and Delhi International Airport, 2006 (brownfield)
Mumbai, India: Operation, Management and Development Agreement between the Government of India and Mumbai International Airport, 2006 (brownfield)
Hyderabad draft concession agreement, India: Concession Agreement for the Development, Construction, Operation and Maintenance of the Hyderabad International Airport between the Government of India and Hyderabad International Airport, 2004 (greenfield)
Lease deeds and shareholder agreements for each of the projects listed above are published by the Airport Authority of India.
Small Scale Airports
- Skukuza Airport - Public-Private Partnership Agreement for the Management and Operation of Skukuza Airport in the Kruger National Park (sample draft agreement of October 2008 with annotations) - Model agreement for a PPP involving the management and operation of a single runway small scale airport.
Further Reading and Resources
Private Investment in Airport Infrastructure
Main elements of the concession model for the Madrid-Barajas and Barcelona-El Prat airports (Principales elementos del modelo concesional de los aeropuertos de Madrid-Barajas y Barcelona-El Prat), Clifford Chance, Client Briefing June 2011 (English and Spanish)
La experiencia española en concessiones y APPs: Puertos y Aeropuertos, by Andrés Rebollo, Programa para el Impulso de Asociaciones Publico-Privadas en Estados Mexicanos (PIAPPEM), October 2009.
Developing Best Practices for Promoting Private Sector Investment in Infrastructure - Airports and Air Traffic Control, Asian Development Bank (ADB) 2001: This is one volume of a five-volume set presenting the findings of an ADB regional technical assistance study which developed sector-specific best practices for promoting private sector participation in key infrastructure sectors in ADB's developing member countries. The best practices cover the role of government, institutional reform, strategic planning, legal and regulatory frameworks, unbundling and competition, contractual arrangements, sources of financing, and the allocation of risk. This volume examines the underlying economics and alternative models of private sector participation in the airport sector, and recommends approaches to encourage successful private sector participation.
Airport In-Terminal Concessions
Guidebook for Developing and Leasing Airport Property, Report 47, Airport Cooperative Research Program (ACRP), 2011 - This Guidebook discusses the key issues associated with developing and leasing available airport land and summarizes best practices from the perspective of the airport sponsor. The guidebook presents a diverse set of case studies that show several approaches airports have taken to develop and lease property for both aeronautical uses (e.g., aircraft maintenance facilities, fixed-base operator facilities, hangars, training centers, and cargo facilities) and nonaeronautical uses (e.g., light industrial and commercial facilities). A glossary of terms is also included. This guidebook will therefore be of interest to anyone desiring a better understanding of the process for developing and leasing airport property.
Resource Manual for Airport In-Terminal Concession by the Airport Cooperative Research Program. This manual provides guidance on the development and implementation of airport concession programs. The report provides information on the airport concession process; concession goals; potential customers; developing a concession space plan and concession mix; the Airport Concessions Disadvantaged Business Enterprise (ACDBE) program; and concession procurement, contracting, and management practices.