The project will use a PPP scheme where the private sector will design, build, finance, operate, and maintain the airport facilities. A new international passenger terminal, the extension of the main runway, and other infrastructure enhancements will help the airport meet forecast air services growth up to 2040. The concession period and other parameters will be determined based on the feasibility study.
Under the 20-year design-build-finance-operate-transfer agreement the private partner agrees to build a new terminal building, air-traffic control facilities, and a new apron and associated facilities.
Improving air transport is crucial to Papua New Guinea’s economic and social development, and the key to improving connectivity in the country.
The Civil Aviation Development Investment Program, a project supported by a multitranche financing facility from the Asian Development Bank (ADB), is establishing a sustainable civil aviation network for Papua New Guinea by improving airport facilities and services, and building the capacity of civil aviation agencies.
The project offers lessons for large-scale development projects that require long-term investments.
As a small, isolated country in the Pacific, Samoa is heavily dependent on tourism for jobs and economic development. The government’s objectives for the aviation industry included providing safe, modern, efficient, and affordable international air transport to Samoa to support expansion of the tourism industry. Operating Polynesian Airlines in a commercially and financially sustainable manner was also a high government priority.
A joint venture between the government of Samoa and Australia’s Virgin Blue, a low-cost carrier, turned an annual $7.5 million government subsidy into a $6.9 million profit in just two years. IFC served as the lead advisor for the innovative public- private partnership, which established a new national airline, Virgin Samoa (formerly Polynesian Blue), and restructured the existing flagship carrier. The agreement was signed in September 2005. By 2009, 243,000 people received improved airline service, and consumers saved $57.7 million in reduced airfares between 2005 and 2009.
International law firm Gide Loyrette Nouel, based in Paris, has worked on airport concessions for Malé International Airport (Maldives) and Bamako International Airport (Mali), as well as airports in Tahiti, Tunisia, Congo, Saudi Arabia, and Mauritius. As is the case in most public-private partnership (PPP) projects, the legal issues encountered fall into two broad categories: legal and institutional framework requirements, and contractual aspects of PPPs. This article examines these issues with a particular focus on airport concessions.
Brazil’s second round of airport concessions will increase operational efficiency, improve the level of service to international standards, and expand the infrastructure capacity of two major Brazilian airports: Galeão and Confins, located in Rio de Janeiro and Belo Hori- zonte, respectively. The Galeão airport transaction closed on April 2, 2014, followed by the Confins transaction, which closed on April 7, 2014.
Investment in Air Transport Infrastructure
Guidance for developing private participation Author: Mustafa Zakir Hussain, Editor
Airports are designed and developed to support and provide infrastructure facilities to airlines. Since many decades, the airports remained as natural and public monopolies with large economies of scale. Only recently and after the corporatization and privatization, airports come under economic regulation. Particularly, during last few decades the nature of the airport industry has undergone a drastic change.
Queen Alia International Airport (QAIA) has been Jordan’s principal domestic and international airport since it was built in 1983, handling more than 97% of the country’s air traffic. But QAIA was built at a time when air traffic and passenger numbers were low and sustained growth of 7% per year since 2000 meant the airport could simply not meet the demand. So in 2007, the government looked to partner with the private sector to expand and rehabilitate the airport, including constructing a new 900,000-square foot terminal, and asked IFC for help.