The Global Pipeline …

Opportunities for Airport Investors Around the World

September 2016
Bringing a world of experience
to Global
The the airport
Pipelineindustry GAD Asia – 2016 Delhi
 The Global Pipeline …
The Americas Europe & Africa Asia & Oceania

The Global Pipeline GAD Asia – 2016 Delhi 2

 The Americas
Looking Ahead (+18 months)
• Brazil
• Colombia
• Paraguay
• Jamaica
• St. Lucia
• Canada
Rear-view (-18 months)
• Brazil
• Chile
• Ecuador
• Honduras
• Peru
• Bermuda
• Dominican Republic
• Jamaica
• United States

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 Brazil
Round Three
• Salvador ₋ delayed due to “lava jato” scandal
• Fortaleza ₋ gov’t public hearings held May/Jun
• Porto Alegre ₋ no equity participation by Infraero
• Florianopolis ₋ no minimum equity from operators

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 Brazil
Round Four
• Congonhas
(São Paulo)
• Santos Dumont
(Rio de Janeiro)
• Manaus
• Curitiba

₋ gov’t considering a “steak & bone” model …

bundling profitable and marginal airports

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 Colombia
• Bogota
(El Dorado II)

- greenfield airport
master plan study
tendered in 2015
- development project
to be let in 2017
- public/private
investment and
operating model yet
to be determined

The Global Pipeline GAD Asia – 2016 Delhi 6

 Colombia
• Airplan & AdO - potential sale of shares in
(12 airports) Airplan and Aeropuertos del
Oriente (AdO)
- operators of six airports each
(including two in Medellín)

The Global Pipeline GAD Asia – 2016 Delhi 7

 Paraguay
• Asunción
(Silvio Pettirossi)

- gov’t reviewing
technical offers from …
- VINCI Airports TOCSA,
- Sacyr-AGUNSA &
Aeropuerto Asunción
Silvio Pettirossi,
CEDICOR - Caminos
Viales del Uruguay

The Global Pipeline GAD Asia – 2016 Delhi 8

 Jamaica
• Kingston
(Norman Manley) - competitive process for concession
and investment launched late 2014
- attracted five pre-qualified bidding
groups … no offers received
- capital investment and concession fee
structure cited as key stumbling blocks
- newly-elected national gov’t assessing
PPP options and potential/demand for
a new cargo airport
- realistically, deal with MBJ operator
most likely/logical outcome

The Global Pipeline GAD Asia – 2016 Delhi 9

 St. Lucia - competitive PPP process launched in
late 2014 to select a private operator-
• Vieux Fort
(Hewanorra) developer … no outcomes published
- meeting held in Aug between gov’t and
IFC to assess “go forward” options

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 Canada
• National Airports
- recent report by David Emerson,
former Minister of Int’l Trade
and Vancouver Int’l Airport
Authority’s first CEO, suggests
privatization of busiest airports
- options range from outright
sale of lands and assets to
monetizing rent due to federal
gov’t under existing not-for-
profit/non-share capital model

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 Recently Transacted (… or in the works)
• Brazil São Paulo - Guarulhos, Brasilia,
Viracopos, Natal (various off-mkt transactions)
• Chile Santiago AdP, VINCI
• Ecuador Quito Aecon  Odinsa
• Honduras Greenfield Inversiones EMCO,
Flughafen Munchen
• Peru Cusco Corporación America, Andino
• Bermuda LF Wade Aecon, CCC
• Dominican 5 airports Advent  VINCI
Republic
• Jamaica Montego Bay Abertis  GAP
• United States LaGuardia Skanska, Vantage
Denver Ferrovial, Saunders

The Global Pipeline GAD Asia – 2016 Delhi 12

 Europe & Africa
Looking Ahead (+18 months)
• Bulgaria
• Greece
• Lithuania
• Serbia
• Nigeria
• Tanzania
Rear-view (-18 months)
• Albania
• France
• Germany
• Greece
• Spain
• United Kingdom
• Rwanda

The Global Pipeline GAD Asia – 2016 Delhi 13

 Bulgaria
• Sofia
- gov’t adopted new Concession
Act in Apr to allow concessions
up to 99 years (per EU rules)
- proposal call launched in Jun
seeking private operator for
an initial 35-year term
- process suspended due to
competition complaint by
Kuwaiti/Emirati contractor
against current operator

The Global Pipeline GAD Asia – 2016 Delhi 14

 Greece
• Crete - deadline for binding offers on new
(Kastelli) greenfield airport extended to late Sep
- capital works of €900m on a 37-year term
- scope includes upgrade of the island’s
road links to the airport

The Global Pipeline GAD Asia – 2016 Delhi 15

 Lithuania
• Vilnius - InterVISTAS appointed as gov’t advisor in
• Kaunas May … tasked with defining project
• Palanga objectives and negotiating with bidders
- focus on route/service development and
promoting economic/national interests
- initial investors conference and info
session set for Sep 21 in Vilnius

The Global Pipeline GAD Asia – 2016 Delhi 16

 Serbia
• Belgrade
(Nikola Tesla)

- gov’t recently appointed

Lazard Freres to assist with
concession structure/award
- recent gov’t estimates
suggest an enterprise
value of up to €500m
- independent 3rd party valuation due by year-end,
expected to be in the €100-150m range
- interest reported from VINCI, Fraport, Bouygues, two
UAE-based companies and three Chinese investors

The Global Pipeline GAD Asia – 2016 Delhi 17

 Nigeria
• Lagos - gov’t recently announced intentions
• Abuja to privatize busiest airports
• Port - investor confidence is the key obstacle
Harcourt in wake of recent high-profile project
• Kano failures due to contractual breaches
- firm support from aviation sector …
strongly opposed by trade unions

The Global Pipeline GAD Asia – 2016 Delhi 18

 Tanzania
• Dar es Salaam - at GAD-World (AMS) last fall, gov’t laid
(Julius Nyerere) out tentative schedule …
- procurement 3-6 months
- transaction 12-18 months
- bid submission 6 months
- negotiation/award 3 months
- total investment of ~USD500m
- concession “tailored to best practice”
with balanced consortium including …
- airport operator
- contractor/consultant
- financial partner
- current status … unknown??

The Global Pipeline GAD Asia – 2016 Delhi 19

 Recently Transacted (… or in the works)
• Albania Tirana Avialliance  China
Everbright, Friedmann Pacific
• France Nice Atlantia, EDF
Lyon VINCI, Caisse des Depots,
Predica (Credit Agricole)
• Germany Frankfurt-Hahn Shanghai Yigian Trading
(investor missed initial payment - current status unknown ??)

• Greece 14 airports Fraport, Copelouzos

• Spain Ciudad Real CR Int’l Airport SL
(conditional on investor maintaining court-ordered pmt schedule)

• United Kingdom London City Ontario Teachers, Borealis,

AIMCo, Wren House
• Rwanda Bugesera Mota Engil Engenharia

The Global Pipeline GAD Asia – 2016 Delhi 20

 Asia & Oceania
Looking Ahead (+18 months)
• India
• Indonesia
• Japan
• Philippines
• Thailand
• Vietnam
• Jordan
• Saudi Arabia
• United Arab Emirates
Rear-view (-18 months)
• India
• Japan
• Myanmar
• Philippines
• Vietnam
• Iran
• Turkey
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 India
• NAVI-Mumbai - early new year, gov’t pre-qualified
four groups (incl. GVK and GMR)
for the right to develop/operate
new greenfield airport
- designed to handle up to 60m
passengers on full build-out
- final envt’l approvals in the works

• Chennai - RFQ issued in late 2014 for PPP

• Kolkata operation and development
• Ahmedabad - stagnant, after series of conflicting
• Jaipur reports, status/future unknown??

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 Indonesia
• Yogyakarta - gov’t considering new US$500m
int’l airport, as a PPP-JV with
state-owned Angkasa Pura I
- per state law, foreign investors
cannot hold majority stake in
Indonesian airport companies

• West Java - despite reports of progress on this

project early in the New Year,
project remains a question mark

The Global Pipeline GAD Asia – 2016 Delhi 23

 Japan
• Takamatsu - expected to go to market in
• Fukuoka 2018 and 2019 respectively

• Hokkaido - plans to concession Hokkaido's New

(Chitose) Chitose Airport and three smaller
nearby airports recently announced

The Global Pipeline GAD Asia – 2016 Delhi 24

 Philippines
• Laguindingan
• Bohol
• Davao
• Bacolod
• Iloilo

- despite best efforts of the PPP Center, process/award for five

regional airports not concluded prior to national elections in
May … status/future of concession process unknown
- newly-elected President Rodrigo Duterte has vowed to
speed up process for implementing future PPPs

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 Thailand
• Krabi - gov’t expressed interest in advancing
• Udon airport PPP agenda in late 2014
• Thani - news very scarce until recently …
• Ubon mid-Jul reports indicate Krabi project
will be fast-tracked, with private
• Ratchathan
companies invited to invest/participate

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 Vietnam
• Ho Chi Minh
(Long Thanh)
- ACV has developed a PPP
investment plan for airport
- two stages (2016 & 2023),
initially a runway and 17m
passengers terminal, with
future expansion to 25m
- interest reported from AdP,
Samsung, Incheon Airport
and several Japanese firms

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 Vietnam
• Mekong Delta
(An Giang)

- gov’t considering a new US150m

greenfield , under a PPP format
- opponents citing concerns over
high cost of project and
proximity to Phu Quoc, Rach Gia
airports and Cambodian border
- recently announced that project
has been removed from capital
investment priority list

The Global Pipeline GAD Asia – 2016 Delhi 28

 Jordan
• Marka - buoyed by success of QAIA project,
• Aqaba Jordan is considering PPP model for
Marka, Aqaba and new greenfield site

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 Saudi Arabia
• Riyadh - gov’t recently rolled out sweeping PPP plan
• Jeddah across multiple sectors, including airports
• Dammam - aggressive target for full privatization of all
• Ta’if 27 Saudi airports by 2020 … Riyadh, Jeddah,
Damman & Ta’if at front of the queue

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 United Arab Emirates
• Dubai
(Al Maktoum)

- gov’t looking to PPPs as

alternative financing
strategy for key
infrastructure
developments including
a variety of projects at
Al Maktoum

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 Recently Transacted (… or in the works)
• India Goa-Mopa GMR
Bangalore GVK/Zurich  Fairfax
Delhi Fraport  tba
• Japan Kansai/Itami Orix, VINCI
Sendai Maeda, Tokyu
• Myanmar Hanthawaddy JGC, Yongnam, Changi
• Philippines Mactan-Cebu Megawide, GMR
• Vietnam 20 airports IPO for 20% stake in ACV ...
152 individual investors
• Iran Mashhad VINCI (MOU w/ gov’t)
Isfahan
• Turkey Istanbul Airport Operations Inc.
(greenfield) (5 Turkish investors)

The Global Pipeline GAD Asia – 2016 Delhi 32

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The Global Pipeline GAD Asia – 2016 Delhi 22

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The Global Pipeline GAD Asia – 2016 Delhi