Four Airports Ppp Nigeria
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FOUR AIRPORTS PPP NIGERIA PROJECT DESCRIPTION PROJECT SUMMARY THE FEDERAL MINISTRY OF TRANSPORTATION IS ASSESSING THE FEASIBILITY OF PUBLIC PRIVATE PARTNERSHIPS (PPP) FOR THE AIRPORTS OF ABUJA, LAGOS, KANO AND PORT HARCOURT LEVERAGE PRIVATE SECTOR PARTICIPATION AND FOREIGN INVESTMENT TO ACHIEVE THE UPGRADE AND DEVELOPMENT OF NEW INFRASTRUCTURE AT THE AIRPORTS IN THE FASTEST AND MOST COST-EFFECTIVE MANNER. KANO 0.5 MPPA ABUJA 4.2 MPPA LAGOS 6.7 MPPA PORT HARCOURT 1.1 MPPA FOUR AIRPORTS PPP Page 2 NIGERIA TRAFFIC OVERVIEW THE NIGERIAN AVIATION INDUSTRY HAS BEEN FACING MAJOR CHALLENGES DUE TO HIGH FUEL PRICES, LIMITED ACCESS TO FOREIGN CURRENCIES, AS WELL AS LOW AIRCRAFT UTILISATION AND HIGH MAINTENANCE COSTS TOTAL PASSENGERS LAGOS, PORT HARCOURT, ABUJA, KANO • With 6.7 million passengers, Lagos Domestic International Total Growth Murtala Muhammed 14.0 40% International Airport is Nigeria’s 35% largest airport, 12.0 followed by Abuja 30% Nnamdi Azikiwe International Airport 10.0 25% (4.2m). 20% • Despite the 8.0 country’s higher GDP 15% per capita, 6.0 Nigeria’s 10% propensity to fly is Total Growth Total relatively low 4.0 5% compared to other Total Passengers, Passengers, MillionsTotal African countries. 0% 2.0 • Route network out of -5% the four airports is dominated by 0.0 -10% domestic services 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 operated by Arik Air, PASSENGERS, M 6.7 9.0 10.2 11.8 12.6 12.2 12.8 13.3 12.6 12.4 Dana Air, Air Peace etc. Foreign airlines mostly focus on economic MMA2 Failure Issues trade links, diaspora and Hajj markets. Source: FAAN FOUR AIRPORTS PPP Page 3 NIGERIA GROWTH POTENTIAL – PROPENSITY TO FLY CATCH UP LARGE POTENTIAL WHEN CAPITALISING ON THE POPULATION, CURRENT PROPENSITY TO FLY WELL BELOW PEERS FOUR AIRPORTS PPP Page 4 LARGE POPULATION GROWTH HISTORICAL AND FUTURE POPULATION HAS DOUBLED SINCE 1990 AND STILL HAS A FERTILITY RATE OF 5.07 AS OF 2017 450.0 400.0 TREND FORECAST TO CONTINUE BY UN AND WOLD BANK 350.0 300.0 250.0 200.0 Population,Millions 150.0 100.0 50.0 - Source: United Nations and World Bank FOUR AIRPORTS PPP Page 5 INFRASTRUCTURE AND NEW TERMINALS CONSTRUCTION OF 4 NEW TERMINALS ONGOING ABUJA • 56,000 sqm KANO • 15 mppa capacity • Relatively new • 3,000 sqm Duty existing terminal Free area from 2011 • 8 boarding bridges • Advanced state of construction of • Recently complete new terminal major runway overhaul • Will multiply current capacity LAGOS PORT HARCOURT • 48,000 sqm • Remodelling of • Advanced state of existing terminals construction plus new terminal doubles capacity to • Will multiply 30 mppa current capacity • Boost current constraint airport facilities FOUR AIRPORTS PPP Page 6 NIGERIA LEGAL CONTEXT Civil Aviation Act 2006 Civil Aviation Regulations ICRC Act 2005 / PPP Regulatory Commission Bill Procurement New Legislation FOUR AIRPORTS PPP Page 7 PROJECT ROADMAP PHASE 1 PHASE 2 PHASE 3 POLICY AND BUSINESS PPP FINAL PPP CONTRACT CONTEXT PROCUREMENT NEGOTIATIONS • Inception Report v • Draft Outline Business Case (OBC) Report • Closeout Report • Policy, Legal and Business Context - Policy, Legal and Business Context - Negotiate Concession Report v - PPP Options and recommendation Agreement and other - PPP Project Assessment documentation - Policy and legal review - Demand & Traffic Forecast - Traffic growth - Technical & Operational Assessment - Achieve Financial Close - Operating performance - Financial Analysis - Infrastructure review - Legal Review - Value for Money Assessment • PPP Business Options Report - Social & Environmental Review - Local and international - Risk Assessment examples - Implementation recommendations - Legal review of options - Assessment and • Final OBC Report recommendations. • Procurement Report - Pre-qualification (RfQ) - Tendering process (RfP) - Bid submission - Bid evaluation and recommendations - Winning bidder selection • Final Full Business Case Report FOUR AIRPORTS PPP Page 8.