Bhogapuram International Airport: Zurich, Munich, Incheon among seven bidders for Andhra project

Seven bidders have submitted offers, competing to build the Rs 4,200-crore greenfield Bhogapuram International Airport project in Andhra Pradesh.
Virender Singh, CEO, Andhra Pradesh Airports Development Corporation (APDCL), told FE the authority has received bids from a joint venture of Zurich Airport and a local bank, Essel Infraprojects in a joint venture with Munich Airport, Reliance Infrastructure in a joint venture with South Korea’s Incheon Airport, GVK, GMR, National Investment and Infrastructure Fund (NIIF) along with AviAlliance, and Bangalore International Airport (BIAL) in a joint venture with Mauritius-based I Investments. He said the the winning bidder will be announced by the end of the month.

The airport is to be developed in three phases at an approximate cost of Rs 4,200 crore. The winning bidder will develop the airport which will have a capacity to accommodate 6 million passengers annually at the end of the first phase of construction, growing to 12 million at the end of the second phase and finally, to 18 million at the end of the third phase when construction of the airport will be fully completed. The developer is to recover his expenses from revenue sharing and from property development rights in the area which will be allotted to them. The project will be awarded to the bidder offering the highest revenue share. The concession period is for 40 years and can be extended by another 20 years, Singh told FE.

The Bhogapuram airport has been delayed due to various reasons. The Airports Authority of India (AAI) had pipped GMR in 2017 to win the right to develop the airport but this was cancelled by the Andhra Pradesh government in January this year. The state government also expanded the scope of the project from a “mere airport to an integrated airport”, according to an official release issued in January.

AAI had won the bid after it offered a revenue share of 30.2%, compared to GMR’s 21.6%. As per the new tender, the winning bidder will now have to develop the airport as a hub for aircraft MRO (maintenance, repair and overhaul) activities as well as operate an aviation training institute. The airport is to be built about 40 km from Visakhapatnam.

Source: Financial Express

Indonesia Pins Hopes on Private Sector for Airport Development

In an urgent bid to address overcapacity and modernize existing infrastructure, the Indonesian government has turned to the private sector to fund a series of airport projects across the sprawling archipelago. In recent days, the government has revived talks of a new $10 billion international airport to serve as an alternative to Jakarta’s Soekarno-Hatta Airport, which has operated beyond design capacity for more than 10 years. Authorities have earmarked reclaimed land some nine miles north of Soekarno-Hatta for the project, plans for which call for financing from a private-public partnership scheme between investors and state-owned PT Angkasa Pura II.

Separately, the airport operator has earmarked three facilities in North Sumatra to receive a combined $796 million in upgrades, including Sibolga Airport, Silangit Airport, and Kualanamu Airport. PT Angkasa Pura II has started accepting letters of intent to expand airside and landside facilities at Kualanamu, including the terminal, apron, runway, and hangar.

On the island of Flores in East Nusa Tenggara province, Komodo Airport will start accepting tenders later this month for the operation and expansion of facilities. The $200 million airport project, which falls under the purview of the Ministry of Transportation, would increase the airport’s current capacity from one million to four million passengers per year by 2044.

Meanwhile, at least five airports and four proposed airports have made the government’s list of strategic projects as part of President Joko Widodo’s ambitious infrastructure initiative to bolster economic activity and increase air connectivity between the country’s some 17,000 islands.

Yet, despite ongoing talks to address infrastructure bottlenecks and upgrade navigational equipment and facilities, very few investors have come forward to bring the projects to fruition. Notable exceptions include the Salim group, which signed a memorandum of understanding with PT Angkasa Pura II in 2017 to build a new $150 million airport at Bintan Island in the Riau Archipelago, and Indian conglomerate GVK, which manages the landside facilities at Bali’s Ngurah Rai International Airport

Rather, the majority of infrastructure projects have received their financing through loans and public money, which is creating an enormous burden on Indonesia’s state-owned airport operators.

Indonesia’s infrastructure faces further strain from the constant threat of natural disasters such as flash flooding, volcanic eruptions, and earthquakes, which frequently disrupts airport operations across the nation. In late September, a 7.7 magnitude earthquake caused extensive damage to Mutiara Sis Al Jufri airport in Palu, Central Sulawesi. The airport has since resumed limited commercial operations while it undergoes repairs and facility upgrades.

Source: AIN on line

Bulgaria cancels Plovdiv Airport concession tender

Bulgaria’s government said on Wednesday that it has cancelled the tender for a 35-year concession contract to run Plovdiv Airport, after the first-ranked consortium comprising China’s HNA Group and Dutch-registered Plovdiv Airport Invest withdrew its offer.

There is significant difference between the offers of the participants ranked first and second, and it was at the discretion of the transport ministry to decide whether to cancel the procedure or to award the contract to the second-placed consortium, the government said in a statement following its weekly meeting.

It is also not viable to award such a long-term contract after holding the procedure under the old concession law, which was recently amended in order to be in line with EU legislation, the government said.

The HNA Group – Plovdiv Airport Invest tie-up pledged to invest 79.1 million euro ($91.1 million) in the airport and pay an annual concession fee of 600,000 levs plus 6% of all net income from the operation of Plovdiv Airport.

The second-ranked offer came from a tie-up comprising Bulgaria’s Trakia Economic Zone and local transport and logistics company PIMK, which offered to invest 65.5 million euro and pay each year 120,000 levs plus 6% of all net income generated from the airport’s operation.

Source: seenews.com

Paris’ airports not for sale to foreign powers

France would block any moves by a foreign power to gain control of ADP (ADP.PA), the airports company whose possible privatisation has been approved by the government, Finance Minster Bruno Le Maire said on Sunday and reported by the Reuters news agency.

“If a foreign power wanted to gain control of ADP, the response would be ‘No’,” Le Maire told a programme hosted jointly by CNews TV, Europe 1 radio and Les Echos newspaper.

“The French state will have the last word regarding who might be ADP’s principal shareholder,” he added.

Earlier this month, France’s lower house of parliament approved plans for the possible privatisation of ADP, lottery operator Francaise des Jeux (FDJ) and for a reduction of France’s stake in utility Engie (ENGIE.PA).

Those privatisation proposals form part of a broader strategy to raise cash to boost the economy and finance technological innovations in France.

Shares in ADP, in which the French state has a stake of just over 50 percent, are up by around 20 percent so far in 2018.

Source: Radio France International (France Media Monde)