GMR Airports Ltd, Terna Groups signs concession agreement for construction of Intl Airport in Greece

GMR Infrastructure Limited on Friday said that its subsidiary GMR Airports Limited and its Greek partner Terna Group have signed a concession agreement for construction of the new International Airport at Crete in Greece.

The concession agreement involves design, construction, financing, operation and maintenance and exploitation of the new International Airport of Heraklion at Crete.

The Concession Period for the project is 35 years including Phase 1 Construction of 5 years, GMR said in a release here.

Greece is one of the leading International tourist destinations, attracting nearly 27 million tourists per annum.

Crete is largest and most visited island in Greece. Heraklion Airport, located in Crete, is the second largest Airport in Greece and has registered traffic growth at a CAGR of 10 per cent per annum over the past three years.

The current airport is facing a severe capacity constraint and will be replaced by the new airport at Kastelli.

The consortium intends to invest over 500 Million Euro for development of the new airport.

The entire project will be funded through a mix of equity, accruals from the existing airport, and financial grant being provided by the Government of Greece; therefore, debt is not required in this project.

Commenting on the development, Mr. Srinivas Bommidala, Business Chairman, Energy and International Airports said, this is GMR Group’s first foray in the EU region and we eagerly look forward to expanding our footprint in the EU.

The signing of the Concession Agreement is a significant milestone in the growth journey of GMR Airports’ and reinforces our leadership position, he said.

The New Heraklion airport project is a landmark PPP project for Greece and it is a matter of great pride for the GMR Group to work on this prestigious project, Mr Srinivas added.

Source: United News of India.

Mumbai, Delhi will need a third airport soon

The long wait for the Navi Mumbai International Airport just got a bit longer. It will now start operations early to mid-2020, and not in December 2019, Maharashtra chief minister Devendra Fadnavis said yesterday.

The Navi Mumbai International Airport project was proposed in 1997. Since then, a host of issues, chiefly around land acquisition, have held up the project. In February last year, prime minister Narendra Modi officially inaugurated work on the project, with the first flight scheduled for “end 2019”. However, that deadline has now been pushed.

The Navi Mumbai International Airport is being developed on a public-private partnership basis between government agency CIDCO and GVK-Mumbai International Airport Limited (MIAL). One of the world’s top design firms, Zaha Hadid Architects, has been roped in for the project. The firm is also designing the upcoming Daxing mega-airport in Beijing.

But even the second airport won’t be enough. Mumbai and Delhi will need a third airport by 2040. The aviation ministry’s Vision 2040 document, unveiled at the Global Aviation Summit yesterday, forecasts a massive surge in air traffic in the coming years. It will spike six times to1.1 billion per year by 2040, with nearly 2,400 aircraft in the air. “India may have around 190-200 operational airports in 2040. Its top 31 cities may have two airports, and the cities of Delhi and Mumbai three each,” according to the document.

Source: Condé Nast Traveller

Update: ANA (VINCI Airports) signs an agreement with the Portuguese government to finance the expansion of Lisbon’s airport capacity

1.15 billion euros to be invested by 2028 for the extension of the existing Lisbon airport and the opening of a new civil airport in Montijo, entirely financed by the private sector: this investment represents a major milestone for the expansion of Lisbon’s airport capacity and a renewed commitment by ANA and VINCI Airports to contribute to the development of the Portuguese economy.

ANA – Aeroportos de Portugal, concessionnaire of 10 airports in Portugal and 100% subsidiary of VINCI Airports, signed on 8 January 2019 an agreement with the Portuguese governement on the main  principles for the extension of the airport capacity in the Lisbon Region. The event took place on the Montijo military Air Base, in the presence of the Portuguese Prime Minister Antonio Costa, the Minister for Planning and Infrastructure Pedro Marques and the Chairman and CEO of VINCI, Xavier Huillard.

This agreement, which seals the consensus reached between the parties on the main technical, operational and financial assumptions of the project as well as the evolution of the future economic regulation, marks a major milestone for the expansion of Lisbon’s airport capacity. Its terms will be included in the addendum to the concession agreement, which should be signed in 2019, once the environmental authorizations have been obtained.

As part of the agreement signed today, ANA shall invest 1.15 billion euros by 2028, including 650 millions euros for the first phase of the extension of the existing Lisbon airport, and 500 million euros for the opening of a new civil airport in Montijo. In addition, 156 million euros will be invested to compensate the Air Force and to contribute to access works in Humberto Delgado and Montijo.

As initially set out by the Portuguese government, this large project will be entirely financed by the private sector, while ensuring that the competitiveness of the Lisbon hub will be maintained through a moderate evolution in airport charges.

This project contemplates a new dual system of airport infrastructures to serve the region of Lisbon enhancing the hub function of Humberto Delgado Airport through additionnal contact positions and reduced connecting times, and a point-to-point flexible, cost-effective and sustainable airport in Montijo, located near the city center (25 km) and offering a new generation terminal. Both airports will provide a modern and improved passenger experience.

With a target capacity of 48 ATM per hour in Humberto Delgado and 24 ATM per hour in Montijo, this dual airport system will be able to absorb the expected growth of traffic until the end of the concession, which remains unchanged in 2062.

At the signature ceremony, Nicolas Notebaert, CEO of VINCI Concessions and President of VINCI Airports said: “This project and this investment we are announcing today mark a new confirmation of  the two main commitments we took 6 years ago, when we first applied for the privatization of ANA: to contribute to the development of the Portuguese economy by increasing traffic, and to invest in infrastructure to support future growth. Traffic in Lisbon has already increased by almost 100% in the last 6 years and here we are again announcing new investments after the 200 million euros we have already invested in the different Portuguese airports”.

Vietnam receives wave of investments in aviation infrastructure

A significant wave of private investments are flying into aviation infrastructure on the back of improvements in long-term development planning for the sector in Vietnam.

With the master plan to operate 28 airports by 2030, including 15 domestic and 13 international ones, in which Noi Bai, Da Nang, Cam Ranh, Tan Son Nhat and Long Thanh are key international gates, Vietnam is attracting investors to pour money into aviation infrastructure projects.

The Imex Pan-Pacific Trading Group, chaired by Johnathan Hanh Nguyen, has recently sent a document to Minister of Transport Nguyen Van The proposing to join the Airports Corporation of Vietnam (ACV) to invest in Passenger Terminal (T3) at Tan Son Nhat International Airport.

This is the second time this year Johnathan has expressed such a desire.

Meanwhile, the real estate developer FLC Group of Trinh Van Quyet is also interested in investing in the aviation sector. The group has received approval in principle from authorities in the central province of Quang Binh to invest in and upgrade Dong Hoi to an international airport.

The provincial People’s Committee said the project would be implemented under a public-private-partnership (PPP) model.

Quang Binh authorities and FLC Group have jointly asked the transport ministry to approve the project, which is expected to raise capacity from 500,000 passengers to ten million by 2020.

One of the typical examples of increased private investment is Van Don International Airport. The airport is the first private one in Vietnam invested in the form of BOT (Build-Operate-Transfer), with investment capital of VND7.5 trillion (USD321.4 million).

The airport is directly invested and operated by Sun Group.

The aviation services at the airport are still managed by the State in accordance with law.

Van Don is approved by the Ministry of Transport (MoT) as an airport of grade 4E (according to ICAO standard code). It is modern with a 3.6km long, 45m wide landing strip and is capable of accommodating large cargo and passenger aircraft. Van Don Airport is scheduled to begin operation this Sunday.

In their latest report, experts from Vietcombank Securities (VCBS) said they witnessed a trend of privatisation in infrastructure investment.

“This trend on one hand reduces pressure on the state budget and improves service quality, on the other hand, it creates a less positive sign for businesses with a large market share in the industry when the market is shared,” said experts fromVCBS.

VCBS experts also assessed that aviation infrastructure had not caught up with the industry’s development. The total passenger transport market of Vietnamese airlines is predicted to increase by an average of 16 per cent per year by 2020 and 8 per cent in the period 2020-30.

The passenger transport volume in 2020 and 2030 is 64 million and 131 million, respectively, according to the transport ministry’s forecast.

Meanwhile, this year witnessed the five biggest airports of Vietnam, Tan Son Nhat, Noi Bai, Da Nang, Cam Ranh and Phu Quoc, all serving passengers exceeding their designed capacity. In particular, Tan Son Nhat Airport exceeded the figure by 40.7 per cent.

“Despite improvements in technology, the process partially meets the increasing number of passengers each year, the expansion and upgrades to these airports is still an indispensable requirement,” VCBS stressed.

According to ACV, in the period 2018-25, there will be 15 key airports that will receive upgrades. Construction works will also be undertaken on Long Thanh International Airport in phase 1 and new passenger terminals for Dien Bien, Na San and Lao Cai airports.

It is expected that the total investment of terminal and apron projects (excluding Long Thành Airport) amounted to more than VNÐ56.7 trillion with capital accumulated from ACV’s business activities. In addition, it needs more than VNÐ20.7 trillion to invest in the airfield projects, with capital accumulated from this area.

In the above projects, investment priority will belong to Tan Son Nhat Airport.

According to Deputy General Director of Vietstar Airlines Luong Hoai Nam, quoted by online newspaper at the Vietnam Travel and Tourism Summit held early this month in Hanoi, since 1975, Vietnam has only really built completely and put into operation Phú Quoc Airport and most recently Van Don Airport, the rest are mostly upgraded from military airports with limited land funds, making the ability to expand very slight.

Vietnam has 21 airports, while Thailand has 38. The capacity of all Vietnam’s airports is 75 million passengers per year, which is just one-third of Thailand’s. The combined capacity of all airports in Vietnam is that of Changi Airport of Singapore or Kuala Lumpur of Malaysia.

Source: Borneo Bulletin