AIRPORT DEVELOPMENT International News Each Issue of Airport Development Focuses on a Different Region of the World, with Global News at the End of This Section

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Published biweekly – available by annual subscription only – details & order online at: www.mombergerairport.info Publisher: Martin Lamprecht [email protected] – Founding Editor: Manfred Momberger News Editors: Paul Ellis [email protected] – Marnix (Max) Groot [email protected]

Momberger Airport Information by Air Trans Source Inc. – international news & data – published since 1973 AIRPORT DEVELOPMENT International News Each issue of Airport Development focuses on a different region of the world, with global news at the end of this section. A list of past focus regions published in recent years can be downloaded from the Bonus section in the subscriber pages of our website. Focus Region: Asia Pacific Other Regions from page 10

PHILIPPINES The USD 2.27-billion project to rehabilitate Manilla’s Ninoy Aquino International Airport (NAIA) faces further delays, after the Manila International Airport Authority (MIAA) revoked the original proponent status (OPS) granted to Megawide Construction Corp. and GMR. Megawide said it would file a motion for reconsideration, maintaining that it has complied with all the requirements set by the government. Megawide-GMR was the consortium behind the Mactan-Cebu International Airport modernization, which has won multiple international awards. In September 2020, the two companies delivered the Clark International Airport complex to the Department of Transportation (DOTr) under budget and on time. Before the pandemic, NAIA was struggling with over 45 million passengers annually—above its existing design capacity of 31 million passengers per year. This led to frequent flight delays and cramped passenger waiting areas. The government granted Megawide-GMR. the OPS for the renovation of NAIA Terminal 1 in July 2020, after the consortium submitted an unsolicited USD 2.27 billion proposal for the modernization of the country’s primary international airport. Being granted the OPS means that Megawide-GMR could negotiate with the government as the private sector partner for the NAIA rehabilitation project. Prior to Megawide’-GMR’s proposal, a “super consortium” was given the OPS for the NAIA rehabilitation project. The consortium included Aboitiz InfraCapital Inc., the Ayalas’ AC Infrastructure Holdings Corp., Andrew Tan-led Alliance Global Group Inc., Lucio Tan-led Asia’s Emerging Dragon Corp., Gotianun-led Filinvest Development Corp., Gokongwei-led JG Summit Holdings Inc., and Metro Pacific Investments Corp. However, this consortium withdrew from the project. Megawide has said they responded accordingly to the national government’s insistence on contract terms that were stricter than that of the previous proponent. “In response to that call, Megawide submitted an innovative proposal that sought not just to rehabilitate NAIA but transform it into a first-world, global airport complex,” it pointed out. Megawide’s offer also includes a passenger railway link to connect Naia’s terminals within the sprawling 650-hectare complex. This is different from NAIA Consortium’s offer to link the terminals through a dedicated bus system. #1137.1

The USD 15-billion New Manilla International Airport (NMIA) in Bulacan is set to open in 2025. This was announced by San Miguel Corp. president and COO Ramon Ang. In a statement, the SMC chief said work has started for the construction of the NMIA in Bulakan, Bulacan. With this, Ang set the opening date of the massive airport project for 2025. In December last year, SMC awarded Dutch dredging firm Boskalis a USD 1.73-billion contract to restore land at the project site in Bulakan town. In August 2019, the Department of Transportation (DOTr) formally awarded the contract to build and operate the Bulacan airport project to San Miguel Holdings Corp., the infrastructure unit of SMC. Both parties signed the concession deal for the New Manila International Airport on September 18, a month and four days after SMC received the notice of award for the contract.

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The project involves the construction, operation, and maintenance of a 2,500-hectare airport in Bulakan. MIA is designed to accommodate up to 100 million passengers per year as SMC plans to equip the airport with four runways, eight taxiways, and three passenger terminals. Depending on the market forces, two additional runways may also be eyed to be established to handle up to 200 million, the conglomerate earlier said. It will be connected to the North Luzon Expressway through an 8.4-kilometer tollway to be constructed as part of the project. #1137.2

The new passenger terminal building of the Clark International Airport (CRK) has been completed and was set to start operations in January 2021, the Department of Transportation (DOTr) has said. In a statement, the DOTr said the airport expansion project has been “completed by end- September, ahead of its original October target completion date.” “Once operational, it is projected that CRK’s current operational capacity will get a boost, and the airport’s passenger volume will be tripled from the current 4.2 million to 12.2 million annually,” the agency said. The expansion will also elevate Clark airport’s stature as “Asia’s Next Premier Gateway” and is expected to significantly help in decongesting the passenger traffic at Ninoy Aquino International Airport, it added. The project was undertaken by the Megawide GMR. Construction Joint Venture, Inc. (MGCJV), and was monitored by the DOTr and the Bases Conversion and Development Authority (BCDA). #1137.3

The massive Sangley Point International Airport (SPIA) project is still being vetted by the government. The developer, MacroAsia Corp. must prove to the Cavite Provincial government that it still has the financial muscle to fund the first phase of the airport before it can proceed with the development together with its Chinese partner. The first phase of the SPIA project was awarded by the provincial government of Cavite in February 2020, to the team of MacroAsia and state-owned China Communications Construction Co. Ltd. (CCCC). MacroAsia has a 40 percent stake in the consortium, while CCCC holds the remaining 60 percent. In December 2019, the consortium submitted in the sole bid for the project, which will be implemented as a local government public-private partnership joint venture by the provincial government of Cavite. The ground-breaking for the first phase of the airport project was initially expected to take place in the second quarter of the year. The first phase of the project, which will cost USD 4 billion, includes the construction of the Sangley connector road and a bridge to connect the Kawit segment of the Manila-Cavite Expressway to the airport. Phase 1 also involves the construction of the airport’s first runway. The airport will have a capacity of 25 million passengers annually and is intended to help decongest the Ninoy Aquino International Airport. It is expected to be fully operational by 2023, with partial operations to start a year earlier. The fourth runway will be opened after six years. The same consortium will work on the other two phases of the airport project, but there may be contract renegotiations, according to the Cavite government. The second phase, which will cost about USD 6 billion, involves the construction of two more runways, giving the airport an annual capacity of 75 million passengers. The last phase is the expansion to four runways, bringing capacity to 130 million passengers. #1137.4

The Mactan-Cebu Airport is bent on pursuing the construction of the parallel runway in anticipation of future growth. The Mactan-Cebu International Airport Authority (MCIAA) expects recovery of the air travel industry amid the plunge of passenger traffic in 2020 by plotting a long-term development plan. MCIAA general manager and chief executive officer Steve Dicdican said the second runway will be dedicated for take-offs while the existing one will be for landings. “We will continue with our projects. We’re slowly catching up to with the construction of the second runway. We hope to finish it before the end of this administration, probably early 2022,” Dicdican said, adding the need for continued capital spending to boost future growth despite the plummeting income currently. He believes tourism can bounce back once travel restrictions are eased and anxieties of travelers are gone. “We anticipate

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future growth. We need to ensure we are sustainable,” Dicdican said. “We (the airport) will grow as the market grows. Our airport has a modular design so we can always expand. We are built for growth”. Although they are seeing passenger traffic plunging to three million in 2020, a level that was last seen more than 10 years ago amid the dismal air travel demand due to the coronavirus diseases (Covid-19) scare, he added the MCIAA is plotting a long-term goal as it slowly recovers from the impact of the crisis. Dicdican said it will take about two years for the airport to regain its pre-Covid passenger traffic. In 2019, the country’s second biggest air gateway recorded 12.6 million passenger traffic. #1137.5

A feasibility study for the proposed airport in Medellin town in northern Cebu is underway. The announcement was made by the Municipality of Medellin in the fall of 2020, after a meeting with representatives of the Mactan Cebu International Airport Authority (MCIAA). Medellin is a city located 90 kilometres north of Cebu City. Medellin city officials and their counterparts from MCIAA also conducted an ocular inspection of the site in Barangay Camputatan Sur where the proposed Medellin airport will be built. They said that at least 32 hectares of land will be needed for the project that will include a runway and other infrastructure that are needed to accommodate turboprop aircrafts. “The airport will require at least 32 hectares for the runway and other needed infrastructure to accommodate turboprop aircraft,” the town’s statement reads. The town’s advisory said that MCIAA is expected to conduct a feasibility study and provide technical assistance to the local government unit (LGU) for the realization of the project. “MCIAA will conduct a feasibility study and provide technical assistance to the LGU regarding zoning and building regulations. The team will meet monthly for updates,” it reads. The local government of Medellin has been pushing to have its own airport and is targeting for the protect construction to start in 2021. #1137.6

The Department of Transportation (DOTr) will establish two new airports in Mindanao. Mindanao Development Authority (MinDA) Assistant Secretary Romeo Montenegro said that the construction of the New Zamboanga International Airport in Zamboanga City and Central Mindanao Airport Development Project in Barangay Tawantawan, M’lang Municipality, Cotabato province would cost the government USD 289,76 million and USD 3,12 million, respectively. He said that around USD 4,16 million has already been transferred to the local government of Zamboanga City for the acquisition of the airport site in Barangay Mercedes, but actual construction has yet to commence. Zamboanga City has an existing international airport located in Moret Field in Barangay Canelar. MinDA Secretary Emmanuel “Manny” Piñol said that the New Zamboanga International Airport was a commitment project of the Philippines to the Brunei, Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP- EAGA). BIMP-EAGA is a 25-year old sub-regional economic cooperation initiative in Southeast Asia designed to spur economic development in the lagging sub-economies. The new airport project, which will feature a new terminal with six boarding bridges, and a modern control tower, will have a 3,440-meter (11,286 foot) runway to accommodate heavier aircraft, according to Piñol. Construction will start in 2021, he said. For the Central Mindanao Airport Development Project, Montenegro said the government already commenced the construction of the perimeter and frangible fence last June while the constructions of the taxiway and apron expansion, which cost USD 1,91 million, were already 26.6-percent completed. Piñol said the project, which was identified as a priority project to promote inclusive and balanced rural development in Mindanao, would complement the operation of General Santos City International Airport and Awang Airport in Barangay Awang Municipality, Datu Odin Sinsuat, Maguindanao, boosting “economic activities of the area where many agricultural products, including highly perishable fruits come from.” He said the Central Mindanao Airport would be operational before President Duterte’s term ends in 2022. The Central Mindanao Airport will serve the provinces of North Cotabato, Maguindanao, Sultan Kudarat, Davao del Sur and the southern towns of Lanao del Sur and Bukidnon, he added.

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The upgraded Bantayan Island Airport has been reopened. The ceremonial opening marked the completion of extending its 900-meter (2,950-foot) runway to 1,200 meters (3,937 feet), and its own terminal to accommodate commercial flights. The event also welcomed three maiden flights by different airline companies, which departed from the Mactan Cebu International Airport (MCIA). The opening of the upgraded Bantayan Island Airport meant that traveling to the island would be reduced from the usual five hours by bus and ferry to approximately 30 minutes by air. In September 2019, the MCIAA and the Cebu provincial government had signed a memorandum of agreement to develop the airport into a commercial air hub. The Bantayan Airport, which sits in a 29-hectare province-owned property in Sta. Fe town was classified as a community airport, catering to only chartered flights. It now meets the standards of the Civil Aviation Authority of the Philippines (CAAP). #1137.7

A project to modernize Davao International Airport was recently approved by the government. The National Economic and Development Authority-Investment Coordination Committee (NEDA-ICC) recently approved the unsolicited proposal by Chelsea Logistics Holdings Corporation for the USD 1.02 billion modernization. The first phase of the operate-add-transfer project, which was slated to start in 2020, will boost the airport’s passenger traffic by 15.1 million passengers per annum. It will be completed by 2028, with a concession period of 30 years. The modernized Davao International Airport, the primary gateway to Mindanao and the third largest airport in the country after the Mactan International Airport and the Ninoy Aquino International Airport, will bring in more trade and tourism and speed up the economic growth of the region, stressed Department of Transportation (DOTr) Secretary Arthur Tugade. The unsolicited proposal covers the reconfiguration and expansion of the terminal building, construction of parallel taxiway, improvement of airside and landside facilities, installation of modern airport IT systems, and all activities needed to improve airport services. “This is a very positive development as far as fast-tracking our infrastructure backlogs is concerned,” Secretary Vince Dizon, Presidential Adviser for Flagship Programs and Projects, noted. “This will also speed-up the realization of the transportation roadmap which the DOTr envisioned.” #1137.8

MICRONESIA The cost of the expansion project at Won Pat Guam International Airport has doubled in cost and faces new delays. Construction of the airport's third-floor corridor for arriving international passengers has nearly doubled in cost, from the original estimate of USD 70 million to now USD 137 million, and is facing another set of delays. The revised July 2020 completion date is already 10 months behind the original target of September 2019 and is now delayed even further. A major part of the problem with the project, according to airport management, is that the original architectural drawings for the building do not match what's actually built. In addition, the original USD 70 million estimate for the project may have been "underestimated," the airport management has said. The federal mandated project provides for a more secure separation of arriving and departing passengers at the international airport. The airport has, for several years, had to take alternate measures to separate inbound and outbound passengers, such as using temporary partitions with Airport Police Division officers guarding them to make sure passenger flows don't mix. The project is funded by a 2013 debt through the bond market and Federal Aviation Administration grants. The bond funds were supposed to cover not only the corridor project but also to pay the cost of a parking garage and commuter terminal. The last two projects had to be scrapped because of the third-floor project's cost overruns. The construction for a new international corridor at the airport has also prompted a need for more security lanes for the Transportation Security Administration. According to Ada, the new screening lanes have been completed and are just awaiting the installation of TSA screening equipment. #1137.9

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SOLOMON ISLANDS The multi-million dollar Japanese funded Honiara airport upgrade is now in limbo and is currently suspended following the Coronavirus (Covid-19). This project aims to reduce aircraft turn around, provide passenger comfort and improve safety by construction of a new departure terminal, a new taxiway, repairs to existing taxiway, repairs to existing apron and expansion of apron to the west, refurbishment of existing international terminal two-thirds to be used for domestic operations, installation of dykes for flood control, install new generators and install lights. These are major components of the scope of the project at a cost of approximately USD 33.8 million. Japan is funding the airport upgrade and its foreign aid agency the Japan International Cooperation Agency approved the contract. If the threat continues for a longer period of time, the project could be terminated. According to the project’s timeline, it is expected to be completed by June 2022. The project is scheduled for completion ahead of Solomon Islands hosting of the South Pacific Games in Honiara in 2023. The Honiara airport has been experiencing increased flights, visitor arrivals and tonnage of overseas cargo, but such increase has come with a cost due to congestion and poses safety risks to airport users and aircraft due to limited capacity of airport facilities at our busiest international airport. It was reported that the Solomon Islands' government hoped the infrastructure upgrade would be a catalyst for tourism development and would allow the Honiara International Airport to become a competitive regional airport. #1137.10

PAPUA NEW GUINEA Kavieng airport in New Ireland province will soon get an upgrade of USD 26,15 million by the China Railway Construction Engineering Group. The National Airports Corporation has signed a contract for the Kavieng airport upgrade with the State and China Railway Construction Engineering Group. The upgrade will include aircraft pavement and strengthening, runway extension, a new state-of- the-art terminal building, airfield ground lighting and associated works. This is part of the ongoing government’s effort in maintaining and rehabilitating 22 national airports in PNG. NAC acting managing director, Ephraim Wesam said the Kavieng airport upgrading has undergone a bidding process in 2019 where qualified contractors bid for the project. Mr. Wesam said since 2009, the National Airports Corporation, through the government of PNG has been receiving assistance from ADB’s multi-tranche financing facility (MFF) to redevelop its deteriorating civil aviation infrastructure in Papua New Guinea. He said the bid was done in accordance with procurement guidelines following a bid evaluation report that was submitted to ADB. “The contract was awarded to the lowest responsive bidder China Railway Construction Engineering Group Company (CRCEG). A project implementation unit will oversee works on the ground to ensure the implementation of the project progress and its completion on time. #1137.11

FIJI ISLANDS Fiji Airports’ USD 3 billion investment for the upgrade and expansion of Nadi International Airport, which is part of the Master Planning, will see a significant transformation at Fiji’s gateway to the world in the coming years. The major upgrades include a new runway, parallel to the current cross-runway and running alongside where the current private airlines bases area. Other projects are the extension and increase of the international terminal, thereby doubling its size and the number of gates, a new general and aviation cargo area, multiple new taxiways, new walkways connecting the terminal to the boarding bridges, extended arrivals baggage hall, smarter technologies for efficient processing, more retail spaces and space for amenities, new administration building, new fire station and a new Control Tower. It is currently not known how the project timeline will be impacted by the COVID-19 pandemic. #1137.12

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AUSTRALIA Melbourne’s long-awaited airport-to-city rail link route has been unveiled, with a promise to get travellers to their destination in less than 30 minutes. Prime Minister Scott Morrison and Premier Daniel Andrews announced the route in November 2020, committing billions in funding for the historic project, which will connect Victoria’s regional and metropolitan rail networks. The reality of an airport-to- city rail journey has been much-anticipated by Victorians, who unlike Australians in other states, have not been able to catch a train to their airport but instead had to rely on an expensive Skybus service or taxis. Construction is expected to kick off in 2022 and be completed by 2029. Melbourne Airport Rail will see 10-minute turn-up-and-go services running from Melbourne Airport through the city, with direct connections to sites including Melbourne University, the Parkville medical precinct, Melbourne Central and Flinders Street stations, and the St Kilda Road business precinct. #1137.13

A report used for the draft master plan of a new sustainable city surrounding the Western Sydney Airport has warned of the increased risk of bird strikes because of 'green' initiatives planned across the region. There are tens of thousands of bird-strikes with planes every year around the world. The plans included a proposal to increase tree canopy around the airport by 40 per cent. The Department of Planning wouldn't comment on which green initiatives would be scaled back. Designs are underway for the construction of the Western Sydney Aerotropolis at Badgerys Creek, which is set to grow to a city roughly the size of Adelaide in the coming years. But a Wildlife Management Assessment report, commissioned by the NSW Government for its draft master plan said some elements of the design were "at odds" with protecting aircraft from bird strikes. "Safeguarding the 24/7 operations of the airport and the vision of the Western Sydney Aerotropolis are essentially at odds," it stated. "If left unmanaged, this may result in an unacceptable number and type of birds moving through aircraft airspace, compromising aircraft safety." Such strikes have accounted for the loss of more than 600 aircraft and 532 lives internationally, according to data compiled by the report author Avisure, an aviation risk consultancy. Tens of thousands of incidents are reported around the world every year — like the bird strike blamed for bringing down US Airways Flight 1549, which landed in New York's Hudson River in 2009. #1137.14

Brisbane’s Master Plan approval will see USD 3 billion investment in airport infrastructure over the next decade. The Master Plan was approved by the deputy prime minister in the spring of 2020. BAC CEO Gert-Jan de Graaff said the master plan was arguably the most important document the Corporation produces. “While it is a regulatory requirement, these comprehensive five yearly documents form an essential part of our medium and long-term planning at Brisbane Airport (BNE) to ensure the continued delivery of the highest quality of secure and efficient aviation and business services.” Providing a 20-year blueprint for development, the master plan outlines the land use planning and development intent for BNE, ensuring essential aviation infrastructure is continually delivered in advance of the increased demand. “Airport infrastructure requires long term planning with construction periods often much longer than other large-scale infrastructure projects, and despite the current challenge of COVID- 19 on the global industry, the common theme of the Brisbane Airport 2020 master plan is one of planning for growth. Growth in demand for both more frequent flights and for new destinations, growth in the businesses that call the airport their home and growth in the important freight and cargo services, both imports and exports that connect businesses across Queensland to Australia and the world. “The approval of the 2020 Master Plan will see approximately USD 3 billion investment in airport infrastructure over the next decade, allowing Brisbane Airport to cater to the expected doubling of passenger numbers to around 51.5 million by 2040,” he said. While the master plan is the blueprint for development to meet future

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demand, it also forms the platform for BAC’s ongoing contribution to the local, state and national economy over coming decades. An economic study conducted for the master plan found that Brisbane Airport would contribute an estimated USD 6.72 billion to the Australian economy and provide around 46,000 full time jobs at BNE by 2040/41.The Brisbane Airport 2020 master plan has been the subject of extensive consultation with all levels of government, industry and the community. #1137.15

After 15 years of planning and construction Brisbane Airport has opened its new runway 01L/19R. The 3,300-meter (10,826-feet runway) has cost over USD 900 million and was the largest aviation project in Australia during its construction. The runway can handle the largest commercial aircraft and is connected to the rest of the airport infrastructure by 12 kilometres of taxiways. Its distance from the longer 01R/19L runway will allow independent operations on the two runways. The project was particularly challenging due to the soft nature of the land on which the runway was built. in 2019, a 2.3% increase over the previous year, cementing its role as the third most important airport in Australia behind Sydney Kingsford Smith Airport and Melbourne International Airport. #1137.16

Adelaide Airport’s new international departures hall and retail concourse has opened to travellers, in the latest step in its USD 127 million expanded terminal development. The launch of the new facilities is Adelaide Airport’s first major expansion since the current terminal was opened in 2005. In particular, the new international departures hall is three times the size of the previous facility. The next step of the project, which is due to be complete by the end of next year, includes a new international arrivals hall, international lounge, and more retail space. The entire project will expand the terminal’s retail footprint to 7,257 square metres (78,114 square feet), while overall terminal expansion will be 16,500 square metres (177,605 square feet). Passenger numbers have increased by close to 50 per cent since the existing terminal was opened. International passengers alone have tripled over the same 15-year period. Virgin Australia will open an expanded lounge as part of the development. The first VIP facilities for international arrival and departures will also be included. International upgrades will include a second, longer baggage belt for arrivals, more space for emigration and immigration processing, expanded security screening, a larger duty-free precinct for arrivals and departures, and expanded dining and retail options. #1137.17

Cairns Airport has completed a USD 42,42-million upgrade to the T2 domestic terminal. Three years in the making, the development was carefully designed to not only improve traveler navigation, reduce congestion and offer a wider array of retail and dining outlets, but immediately immerse travelers in the essence of our remarkable surrounds. Mr. Carter believes the new upgrade will future proof the airport for many years to come. “With domestic passenger numbers expected to grow by 40 per cent over the next ten years, it was important that we looked at a configuration that both accommodated the increased passenger traffic and put the customer experience first,” Cairns Airport CEO Norris Carter said. Among the terminal’s new eateries are familiar local favourites like Ochre, The Pier Bar and Rattle n Hum, which all showcase local produce and beverages. The T2 Domestic upgrade also includes a number of sustainability measures, including carpet made from recycled fishing nets, carbon-neutral tiles and more natural lighting. Cairns Airport is the seventh busiest by passenger movements in Australia, and the second busiest regional centre behind the Gold Coast Airport. #1137.18

After sixteen years of service and more than a million take-offs and landings, the main runway at Cairns Airport has undergone a complete resurfacing. The upgrade included removing 11,000 tonnes of asphalt, replacing it with a high strength pavement, and repurposing the old material

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across the airport’s internal levee roads. Head of Infrastructure at Cairns Airport Alan Dugan said the project had gone like clockwork, completed each night in work windows to ensure the airport remained open and accessible. “Maintaining safe operations at the airport over this time was critical to the completion of the project and it’s a testament to the tremendous partnerships we have with our airline partners and our contractors,” he said. As a contribution to the local community, new runway grade asphalt from the on-site plant was also used to resurface the Cairns BMX Club access road. #1137.19

The federal government has approved the Canberra Airport 2020 Master Plan, which is set to create thousands of jobs and billions of dollars in economic activity over the coming decades. The Master Plan, which was approved just before the COVID crisis hit, sets out a 20-year strategic vision for the airport to ensure appropriate development and cater for future growth, with passenger numbers set to rise to more than nine passengers people by 2039. Approval of Canberra Airport’s 2020 Master Plan follows a comprehensive statutory referral and consultation process that attracted support from all major stakeholders. The airport authorities aim to add more international flights to different locations such as China and New Zealand, construct a new runway and increase the airport’s cargo capacity. The 2020 Master Plan will in force for eight years or until a new one is approved. #1137.20

Hobart Airport’s $50 million new highway interchange faces a potential delay after local landowners threatened legal action to adapt the plans. Greg Casimaty, who heads a consortium planning a multimillion-dollar development in the vicinity, said his project would be effectively locked out because there isn’t a two-way access road. “We, like all Tasmanians, just want a fair go,” said Casimaty. “We had a proposal to do just that, but which has now been stonewalled by this government. We can only hope this incredibly obstinate attitude will change.” Tasmania’s Department of State Growth rejected the complaint and said it had already “engaged extensively” with landowners “over a considerable period of time”. #1137.21

Infrastructure upgrade works for the Townsville Airport redevelopment are underway. The works are an important step in the transformation of the terminal, involving the terminal roof upgrade, as well as water, fire, and sewer upgrades – which are required to address current capacity constraints and accommodate future growth. Builder Lendlease is progressing with the roof works, while Townsville- based CES Civil has just been awarded the contract for water, fire, and sewer upgrades, which will commence next month. Townsville Airport Chief Operating Officer Kevin Gill said the upgrades were critical enabling works for the terminal redevelopment. “We are pleased about moving forward with the core infrastructure works, as an important step in the overall redevelopment,” he said. Townsville Airport reached financial close on a USD 38,6 million loan from the Northern Australia Infrastructure Fund (NAIF) in December 2019. The water, fire and sewerage works include construction of a new sewer rising main, upgrades to existing pumps, new water mains, installation of an internal fire supply main and new fire tanks. Infrastructure upgrade works are expected to be completed by the end of the year. In addition to these works, a road project is underway which will streamline the entryway to the airport precinct by extending Meenan Street to meet John Melton Black Drive, creating a new direct, more appropriate and attractive entryway to the precinct for residents and visitors. All together the roof, core infrastructure and road works represent a USD 7 million investment. #1137.22

NEW ZEALAND Auckland Airport has put most of a USD 860-million work project on ice, but some projects have gone ahead. Auckland Airport had projected passenger numbers to double by 2044, but now faces a devastating blow to its business from the Covid-19 pandemic. Airport development manager André Lovatt says most of the rest of the USD 860 million package of improvements planned at the

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airport has been slashed down to essential safety and asset maintenance for the near future. "It's extremely disappointing ... but with no certainty around when the aviation market will recover it just isn't realistic to keep progressing these projects at this point in time. "We've experienced a significant reduction in flights and passenger numbers, with aircraft movements currently 90 to 95 per cent lower than a normal busy day." A USD 18,66-million runway maintenance job was brough forward. The operator says construction would last eight to 10 weeks. Using a displaced threshold method, the existing runway will be shortened by 1,100 meters (3,608 feet) but aircraft continue to operate while work is carried out safely. Under normal circumstances, there could be a need for airlines to reduce aircraft weight, but the operator says it does not anticipate this with fewer fully laden aircraft flying. This project is “a critical component of Auckland Airport’s much reduced infrastructure development programme over the next couple of years, one which prioritises selected capital projects that are focused on essential safety and asset maintenance”. #1137.23

Wellington Airport has put its terminal expansion plans on hold indefinitely because of the coronavirus pandemic but insists the project will still happen. The airport revealed its expansion plans late last year, hoping to get the project under way within five years and spend USD 574 million over the next eight years. But a lack of passengers because of the pandemic, and a corresponding loss of revenue, has forced the airport to put part of the USD 717,67-million plan on hold. It said the extension of the main terminal, which it planned to redesign to cater for both international and domestic flights, would be put on ice indefinitely while the pandemic played out. “Passenger growth and terminal build now depend on how long Covid-19 border restrictions remain, and how quickly passenger numbers return post-Covid,” an airport spokesperson said. The 20-year redevelopment is premised on passenger numbers doubling to 12 million by 2040. It includes extending the main terminal building to the south, using the old Miramar South School site, and converting half of the Miramar golf course for additional aircraft parking and taxiing. The terminal extension would allow the northern terminal to be used for regional flights - instead of international flights - and the main terminal to be used for international and domestic flights. The plan also involves a range of other upgrades, including runway and taxiway improvements, new freight facilities, an expanded cargo hub, and a new fire station. While those were still on schedule, the terminal “flip” and building extension were likely to be delayed. The controversial runway extension also remains on hold, with no timeframe on when a new resource consent application will be lodged. An initial application was withdrawn in April last year because of new rules around calculating runway safety distances. Airport passenger numbers were up to almost 6.5 million a year before the pandemic but nosedived during the level 3 and 4 lockdowns. By July 2020, monthly seat sales had picked up to about two-thirds of where they were at the same time last year but dropped again to less than half of usual numbers in August. #1137.24

Christchurch Airport will undertake a number of upgrade projects as part of a government effort to stimulate the economy after the COVID-19 lockdown ended. Projects include an expansion of its aeronautical support services precinct, expansion of the South Island airfreight capacity, revitalisation of the Antarctic Support facilities, improving the terminal transport loop, improving the baggage screening capability, and carbon footprint reduction projects including upgrading terminal lighting. Christchurch City Council had submitted about USD 718 million worth of projects to the taskforce set up by the Government to seek out ‘shovel-ready’ infrastructure projects that can quickly stimulate the economy and create jobs. #1137.25

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Christchurch Airport plans to develop a new international airport, which will compete with Queenstown Airport. The airport company said discussions were under way for a “world-class sustainable airport” on 750 hectares of land near Tarras in Central Otago. About USD 32,3 million has been spent on the project to date, which includes buying the land bordered by state highways 8 and 8A. Chief executive Malcolm Johns said the concept was to start with a 2,200-meter (7,217-foot) runway jets would be able to land on. It was planned to be built in modules so it could “start small and grow to meet any future need”. It could be operational between five and 15 years and cost hundreds of millions to build. The runway would allow planes up to the size of the Airbus A320, which carries about 180 passengers, to land. Johns said Christchurch Airport had long seen the potential for a new airport in Central Otago, which would provide widespread social and economic benefits across the South Island. Tarras is just over an hour's drive from Queenstown, which has been suffering from capacity constraints. Work on the proposal started before the coronavirus pandemic affected international travel, but Johns said Covid-19 “doesn't change too much of this proposal, except the timeframes”. #1137.26

A new USD 9-million terminal has opened at Gisborne Airport. “The airport is a high-profile and vital gateway to the region, which helps support tourism and economic activity and keeps us connected to the rest of New Zealand,” said Eastland Group chief executive Matt Todd. Eastland Group, the regional infrastructure company, operates the airport on behalf of Gisborne District Council. The project has been years in the planning. “The vision was to create a place that reflects and shares the unique stories of Te Tairawhiti. Construction was delayed slightly due to the Covid-19 lockdown, so to finally see it come to life is very exciting.” The new terminal was funded by Eastland Group, Trust Tairawhiti, and the Provincial Growth Fund. Construction began in March 2019. The building was completed in two stages to ensure the airport kept operating, which was a logistical challenge. The first stage opened in late November 2019. “This will be the greenest airport terminal in New Zealand, with solar panels, rainwater harvesting, rammed earth walls and many other innovative features” according to Todd. #1137.27

The passenger terminal of Taupō Airport will be upgraded. The airport is benefiting from a USD 4,24 million government funding boost. The project will work to modernise the current terminal, extend the car park, and upgrade the runway apron and is expected to create 60 jobs during construction. Taupō Airport is the gateway to the Central North Island. Visitor numbers to the region had been growing at a rate of 15 per cent a year. The funding consists of USD 3.6 million from the Provincial Growth Fund and USD 625,000 from central government. The project will enable larger planes and more travellers to be accommodated at the airport. #1137.28

Other Regions BAHRAIN Bahrain International Airport’s new terminal is set to commence operations from 28 January. This comes after the Prime Minister recently reviewed the airport expansion project development, along with the new passenger terminal building, which will now be four times the size of the existing one. In the past two decades, this expansion project has been one of the biggest national development projects in the region under the air transportation sector. The new terminal can handle 14 million passengers a year. The project comprises a considerably larger duty-free shopping area, two reception and hospitality lounges for first class and business class passengers, a central utility complex, and nearly 5,500 parking spaces. An aviation fuel farm, a private aviation building offering services for private jet owners and passengers, a private building for firefighting and rescue services, and a central security gate have also been constructed. #1137.29

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25 January 2021 No. 1137 DEV

INDIA Chennai Airport is gearing up for a makeover project. Authorities are planning a modernisation of the airport in two phases to provide a world-class terminal to passengers. The estimated cost of the project is USD 338 million which includes integration of airside corridors, an increase of the number of contact bays, and integration of multi-level car park and Metro rail, according to the press release by the Corporate Communication Directorate of the Airports Authority of India on Wednesday. The modernisation of the Chennai Airport is planned in two stages -- the first stage has seen dismantling of the existing Domestic Terminal T-2 with an area of 19,250 square metres (207,205 square feet) for construction of the new facility which is scheduled to be commissioned by June 2021, while the second phase of Chennai Airport Modernisation commenced in 2019. The second stage will be the demolishment of International Terminal T-3 and the construction of the New Terminal. The total project will be commissioned by December 2022. The new combined terminal (Stage-1 Stage-2) which will function as one large Integrated terminal for International and Domestic operations, having a total area of 2,18,000 square meters (2,346,532 square feet). The capacity will grow from 21 million passengers per annum to 35 million passengers per annum. It will also be GRIHA (Green Rating for Integrated Habitat Assessment) compliant, with various eco-friendly materials planned to be used during the construction phase. "A host of new facilities will ensure passengers flow is smooth and safety/security aspects are given equal importance. Apart from multiple lounges and master concessionaires, Automated Tray Retrieval System (ATRS), Self-Baggage Drop (SBD) Passenger Flow Monitoring System (PFMS) and Boarding Process Control e-Gates will enhance passenger convenience," the authorities said. With the commissioning of a multi-level car parking (MLCP), the present 1200 car parking capacity will increase to 3,000. The buildings will accommodate a car parking area along with spaces created for commercial use. The AAI has also taken up works to enhance the efficiency of the operational area (airside) of the airport by constructing Rapid Exit Taxiways (RET's), taxiways to the main runway (07/25), taxiway straightening works etc. The RETs will reduce runway occupancy time of aircraft. The Chennai Airport is the fourth biggest airport in India in terms of passengers handled per year. #1137.30

KENYA The Kenya Airports Authority (KAA) has started a project to renovate and upgrade Terminals 1B and 1C of Nairobi’s Jomo Kenyatta International Airport (JKIA). The airport is Kenya’s largest airport, the aviation gateway to the country and the busiest airport in East Africa. The project will run for 12 months and cost USD 8.79 million. It will be focused on the departure halls and will improve the check-in, security, and retail operations, as well as the passenger lounges. The upgrades will also improve passenger flow through the terminals. “The refurbishment and facelift of the [Terminal 1B and Terminal 1C] aims to align the passenger experience in these terminals to match what is offered at [Terminal 1A],” explained KAA MD and CEO Alex Gitari. “The remodelling project is an integral part of the ongoing JKIA Customer Service Improvement Plan which was formulated from feedback from our shareholders and customers.” During the upgrade process, airlines operating from Terminals 1B and 1C will be temporarily relocated to Terminals 1A and 2. Therefore, passengers are being urged to arrive at the airport no less than four hours before their flight departure times. #1137.31

MALAYSIA Malaysia Airports Holdings Bhd (MAHB) is setting aside USD 100 million capital expenditure (capex) for mission critical projects in 2021, more than double the USD 44.5 million in 2020. The airport operator also outlined a five-year blueprint, with the first two years focusing on surviving the fallout of the Covid-19 pandemic. "Our capital expenditure for 2020 was USD 44.5 million and these were for key projects such as the network upgrade, Runway 3 rehabilitation, and washroom refurbishment,"

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25 January 2021 No. 1137 DEV

group chief executive officer Datuk Mohd Shukrie Mohd Salleh said. "For 2021, our capex will also be based on mission critical projects and we expect to spend about USD 100 million. It is very important that we forge ahead with the mission-critical projects so that we do not compromise on service levels and to ensure that our airport is future-ready when travel picks up again." Most of these projects are centred around the Kuala Lumpur International Airport (KLIA). Mohd Shukrie Mohd Salleh says the airport operator will embark on critical ageing asset replacement rather than expansion to facilitate traffic when it returns to normalcy. This includes baggage handling system (BHS), the aerotrain and the refurbishment of all washrooms at the main terminal of the KLIA. The government, via the Transport Ministry, had in April 2019 extended the OA for MAHB to operate, manage and maintain airports throughout the country until February 11, 2069. This allows MAHB to implement a commercial development plan sustainably while improving the revenue-sharing with the government. Mohd Shukrie Mohd Salleh said MAHB would focus on business transformation and growth to explore new revenue stream, creating different market segmentation and uplift its overall revenue, both aeronautical and non-aeronautical. "We want to ensure ample capacity for growth by optimising capacity with the modernisation of KLIA Terminal 1 to cater up to 20 million additional passengers. This reduces congestion at critical passenger processing areas and improve processes and services levels," he added. #1137.32

NEPAL Biratnagar airport Nepal is getting a USD 128-million facelift that will add a new terminal and nearly double the length of the existing runway to upgrade to an international facility. Construction work on the 7,000-square-metre (75,347 square-meter) terminal, which is estimated to cost USD 34 million, is slated to begin this year. Chief of Biratnagar airport Utsav Kharel said that as per the master plan, the 1,500-metre (4,921-feet) runway will be lengthened to 2,500 metres (8,202 feet), enabling it to handle narrow-body jets like the Airbus A320 and the Boeing 737. “But we will acquire enough land to enable us to extend the runway to 3,000 metres (9,842 feet) at a future date.” The cabinet granted permission to the Civil Aviation Authority of Nepal to acquire the land for the airport expansion project. The airport expansion project is expected to be completed by 2024, officials said. According to Kharel, total cost of the upgrade is expected to be upwards of USD 127,8 million. In 2019, 596,453 travellers passed through Biratnagar airport, making it the second busiest domestic airport after Pokhara. #1137.33

PERU Lima’s Jorge Chavez International Airport is undergoing a major expansion to transform into one of the most important airports in South America. It is part of the economic reactivation plan proposed by the Peruvian Government. The airside development programme will mainly involve the construction of 10 kilometers (7 miles) of taxiways, a 65 meter-(213-foot) high ATC tower, a second 3,480 meter (11,417-foot)-long runway, and a 250-hectare advanced mid-field apron area to increase the slots available for aircraft parking. It will also add new operational facilities for fire and rescue services, surveillance systems, as well as beacons and navigation support equipment. The new runway is expected to commence operations by late 2022. The airport served approximately six million passengers in 2020, a decrease of 74% compared to the previous year due to the Covid-19 pandemic. The airport is operated by Lima Airport Partners (LAP) which is owned by Fraport (70.01% interest), IFC International Financial (19.99%) and Peru’s AC Capitales SAFI (10%). LAP concession officially commenced operations in February 2001 and its licence to operate the airport will run until 2041. #1137.34

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25 January 2021 No. 1137 DEV

SAUDI ARABIA Saudi Arabia has put on hold financing plans potentially worth billions of dollars for the expansion of Riyadh’s airport, a sign that the kingdom is re-assessing strategic priorities after the coronavirus crisis. Riyadh Airports Company, which manages and operates King Khalid International Airport in the Saudi capital, approached banks last year with a request for financing proposals on the planned airport expansion, which sources said would have been worth several billions of dollars. The expansion was part of the country’s aim to diversify the economy, create jobs and reduce dependence on oil revenues. The company has now halted the process, three banking sources said. Saudi Arabia suspended international flights in the aftermath of the coronavirus outbreak, which has brought global aviation to its knees. The kingdom had begun preparations in 2017 to sell a minority stake in Riyadh airport, the second biggest in the country. Those plans were also suspended. #1137.35

SERBIA VINCI Airports is continuing its modernisation work at Belgrade Airport to make it a more sustainable hub. VINCI Airports, operator of Belgrade Nikola Tesla Airport (BEG), is celebrating the second anniversary of the Belgrade Airport concession by continuing its modernisation and expansion work with great strides to make this platform a future sustainable hub in Eastern Europe. By signing a 25-year concession contract with the Serbian government, VINCI Airports is committed to transforming the airport into a benchmark hub in South-Eastern Europe: Opening new routes, improving flows, enhancing Serbian heritage and the deployment of environmental policy. Investments over the duration of the concession will make it possible to renovate the airport, improve its capacity and operational efficiency and bring quality to the highest international standards, without forgetting to reduce its environmental footprint. Most airports are challenged to optimally plan for variation in passenger demand and allocate the required resources at the right time and location. As such, Belgrade Airport has just unveiled the new central area of the passenger terminal, after five months of work: A comfortable, bright and connected relaxation area which offers travellers new ‘walk-through’ shops, a bar-restaurant and a play area, in accordance with VINCI Airports quality standards. In addition, in 2020, a new waiting area for buses was completed, preparatory work began on the new track and its traffic lanes, and construction of the new parking lot is nearing completion. On the environmental front, Belgrade Airport is investing heavily to reduce its carbon footprint, with the construction of a waste recycling plant and a photovoltaic park, thus joining the Airports Council International (ACI) Airport Carbon Accreditation (ACA) programme by obtaining Level 1. VINCI Airports is working to make Belgrade Airport a sustainable infrastructure and raise the airport to Level 2 of the ACA accreditation. In this context, many investments to reduce carbon emissions are planned: The replacement of the heavy fuel oil boiler room by a natural gas boiler room, coupled with a tri-generation unit, replacement of lighting by LEDs and the construction of a 1 MWp solar farm. #1137.36

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