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

Page 1 of 11

25 August 2020 No. 1127 DEV

Published biweekly – available by annual subscription only – www.mombergerairport.info Editorial office / Subscriptions Phone: +1 519 833 4642 e-mail: [email protected] Managing Editor / Publisher: Martin Lamprecht [email protected] News Editor: Paul Ellis [email protected] – Founding Editor: Manfred Momberger

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: Africa – The South CAMEROON The objectives of a Transport Sector Development Project for Cameroon are to: Strengthen transport planning; Improve transport efficiency and safety on the Babadjou - Bamenda section of the Yaounde - Bamenda transport corridor; and Enhance safety and security at selected airports. This project has four components: 1) The first component, Transport Planning and Capacity Building, aims at strengthening the capacity of the public sector in the planning, development, management and maintenance of transport infrastructure. It has the following subcomponents: (a) Training in transport planning, including data collection and management of modelling tools; (b) Institutional strengthening studies; (c) Preparation of the transport priority investment programme (TPIP); (d) Identification and preparation of pilot transport infrastructure (PPP) projects; and (e) Development of a resilience and climate change adaptation strategy for land transport. 2) The second component, Road Transport Efficiency Improvement, is expected to reduce travel time between Babadjou and Bamenda by improving physical and safety conditions on the most degraded section of the priority road corridor linking the capital city of Yaoundé to Bamenda. 3) The third component, Air Transport Safety and Security Improvement, focuses primarily on facilitating ICAO’s effective implementation (EI) rating of Aerodrome and Ground Assistance (AGA) at project airports (Yaoundé, Douala, Garoua). The project was approved in October 2016 and has a total project cost of USD 206.70 million. The commitment amount of the International Bank for Reconstruction and Development is USD 192 million, and the closing date is 30 June 2022. -- Cameroon has 42 aerodromes of which ten have scheduled traffic, three are international airports and five are major regional airports. The international airports are Douala (Cameroon’s busiest airport), Yaoundé-Nsimelen, and Garoua, while the most important regional airports are Maroua-Salak in the North, Ngaoundéré in Adamaoua province, Bertoua in the East, Bafoussam in the West, and Bamenda in the Northwest. #1127.1

SÃO TOMÉ & PRINCIPE The African Development Bank (AfDB) will donate EUR 12.46 million to finance the Energy Transition and Institutional Support Programme (ETISP) in the Democratic Republic of São Tomé and Príncipe. The five-year programme is expected to cost around EUR 13 million, of which EUR 550,462 has been provided by the Santomean government to promote green growth and sustainable development of the country’s electrical network. The funds will also be used to strengthen the management of public finances and the local business climate. The donation was approved by the Board of Directors of the African Development Fund (ADF), the concessional financing window of the AfDB Group. According to the AfDB, the programme has three components: Directing the energy transition towards renewable energy; providing institutional support while strengthening financial governance and the business climate; Supporting the government in implementing the programme and building institutional capacity.

Page 2 of 11

25 August 2020 No. 1127 DEV

The ETISP’s priorities will be to finance urgent work and to bolster the network of existing thermal power stations. The programme will also support the implementation of an energy efficiency programme, improve airport equipment to increase exports, develop essential computer systems for public finance management, and strengthen institutional capacities in environmental and social management as well as gender equality. The implementation of this programme is likely to result in higher production capacity based on the development of renewable energy sources and greater availability of existing installed capacity. This will give people better access to energy, a reduction in greenhouse gas emissions, and better technical and financial viability of the sector. The program will also improve the reliability of the electricity supply and increase the country’s export capacity. #1127.2

EQUATORIAL GUINEA Turkish Airlines continues to expand its flight network with the launch of operations to Malabo, making the capital of Equatorial Guinea its 319th destination. As the 60th destination of the global carrier in Africa, flights to Malabo will be operated on the Istanbul – Port Harcourt – Malabo – Istanbul route with Boeing 737-900 aircraft. Turkish Airlines Chairman of the Board and the Executive Committee, M. İlker Aycı, stated: “A new era has begun in Turkish aviation and tourism sector with Istanbul Airport. Our new and improved operation hub offers us an unparalleled performance advantage when it comes to enhancing our flight network. Today, in line with our continuing growth strategy, we are happy to announce the addition of Malabo to the ever-expanding flight network of Turkish Airlines. We firmly believe that our new route will further enhance the relations between Turkey and Equatorial Guinea in all areas.” Malabo, the capital of Equatorial Guinea, is the second largest city of the country. Apart from being an oil-rich city, it is also at the forefront with tourism activities. With its natural wonders, rich world cuisine, and historical architecture, Malabo is one of the most prominent destinations in Africa. Travellers who wish to experience the exotic atmosphere of Malabo, the oldest city of Equatorial Guinea, will be able to fly to this great destination with Turkish Airlines. #1127.3

GABON The New Libreville International Airport is the proposed new development to replace the city’s existing ‘Léon Mba International Airport’. To be developed at a location approximately 50 km north of the current Libreville Airport, the new facility will feature a 19,000-m² terminal capable of handling approximately 3.75 million passengers annually and a 3,300-m runway. France’s ADPi was commissioned to develop the design concept and master plan. Construction was expected to start after 2020. #1127.4

ANGOLA The New Luanda Airport is a development project being constructed on the outskirts of Luanda Province. It is also known as Angola International Airport and has been under construction since 2008. The greenfield project will be constructed on a 1,324-hectare site, 40 km from Luanda and will feature two runways capable of handling A380 aircraft and 13 million passengers per annum. The opening was scheduled for 2015/2016 but was delayed several times. It will act as an alternative to the existing ‘Quatro de Fevereiro International Airport’. The airport project represents one of the many frustrations of Angolans with China’s presence, since the Chinese company that managed and funded the project has come under scrutiny for its past misdealings. The firm, known as China International Fund (CIF), led a consortium of Chinese companies, in conjunction with Brazilian conglomerate Odebrecht to build the international airport, which was designed with 12 gates to accommodate 13 million travellers annually. The airport was billed by the Angolan government to be a major hub for sub-Saharan Africa, and a rival

Page 3 of 11

25 August 2020 No. 1127 DEV

to South Africa’s O.R. Tambo International Airport, near Johannesburg, which saw 21.7 million passengers in 2019. Construction delays and an outdated design eventually forced the Angolan government under President João Lourenço - who took office in 2017 after being handpicked by his predecessor José Eduardo dos Santos - to cancel the contract with CIF in February 2019, citing non- performance. According to U.S. government data, construction was about 60% complete as of August 2019, including runways that measure 4,200 m and 3,800 m. But costs have ballooned. “Initially, the project was budgeted at USD 300 million, but it rose to USD 9 billion. And there is no end in sight,” Angolan reporter Rafael Marques said in a recent interview with German public broadcaster Deutsche Welle (DW). Another Chinese company, the state-run Aviation Industry Corp. of China (AVIC), has taken over the project. Angola’s Transport Minister Ricardo de Abrea says the airport is now slated to be completed in 2023, according to local daily Journal de Angola. Marques said the project shows how China has left the country indebted. “When we look at what has been built so far, it is a project that was made to loot the loans that China granted to Angola for national reconstruction,” he said to DW. “It is a never-ending construction project that, at this point, does not make much sense and leaves the Angolan state highly indebted.” ´ China has offered more than USD 60 billion in loans to Angola since the two countries established diplomatic ties in 1983, according to Chinese government sources - focused on an opportunity to provide the South African nation with funds to rebuild roads, schools, and hospitals following a long civil war that ended in 2002. Angola’s Minister of Energy & Water, Joao Baptista Borges, told Japanese media Nikkei in December 2018 that China holds nearly 70% of the nation’s external debt. There has been widespread resentment against China’s presence in Angola. According to a July 2015 Reuters report, Angolans were angry that many local sectors were dominated by Chinese companies. Some 50 state-run and 400 private companies from China were operating in Angola at the time. Many are also displeased at their government for selling the majority of the country’s oil to China as repayment for Chinese loans - meaning that the money from oil doesn’t enter Angola’s economy. Angola is the second-largest oil producer in Africa. In 2017, out of a total value of USD 31 billion in Angolan oil exports, it exported 62% to China, according to data from the Central Bank of Angola. Thus, Angola remains a poor country despite its oil resources. Government corruption has plagued the nation, which won independence from Portuguese rule in 1975. In a 2019 study of infrastructure development in the country, Alves da Rocha, Director of the Angolan Catholic University’s Centre for Scientific Studies and Research, estimates that Angola has lost about USD 20 billion due to corruption in the construction sector alone. The U.S.–China Economic and Security Review Commission (USCC), in a 2009 research paper, detailed how much of China’s financing for oil and infrastructure projects in Angola are funnelled through 88 Queensway Group, a nickname given to a large number of Chinese firms operating in Angola that all register the same Hong Kong address as their headquarters. Within the 88 Group, two companies are in charge of investments: CIF and China Sonangol International Holding - a joint venture between another Chinese company in the 88 Group and Angolan state-owned oil company Sonangol. USCC concluded that several key personnel at 88 Group had ties to Chinese state-owned companies, including oil giant Sinopec. The report also traced some personnel to China’s Ministries of Public Security and State Security, the latter being the country’s chief foreign intelligence agency. Posing as private Chinese firms, the companies essentially acted as a front for the Chinese regime. “CIF loans are administered by Angola’s reconstruction office, Gabinete de Reconstrução Nacional (GRN), and governed with little transparency,” the paper stated. #1127.5

Page 4 of 11

25 August 2020 No. 1127 DEV

NAMIBIA Authorities in China will screen and recommend a shortlist of Chinese companies operating in Namibia for the much-anticipated upgrading and expansion of Windhoek’s ‘Hosea Kutako International Airport’. This was confirmed by the Chinese Embassy. The final winner shall be selected through the bidding process managed by the Namibian authorities in accordance with Namibian domestic laws. The Chinese Embassy in Namibia neither gets involved nor interferes in the selection process. President Hage Geingob initially cancelled the awarding of the airport upgrading tender late in 2015 after the cost of the project was inflated from NAD 3 billion to NAD 7 billion through suspected dubious manipulations. The cancellation was challenged in the High Court, where the Government first lost that case before the Supreme Court subsequently overturned the decision. Finally, the Chinese side agreed to finance the massive upgrading and expansion project. The terms of the financing package, which consists of a concessional loan and a grant, are quite favourable to Namibia, reflecting the special relationship between the two countries. The scope of the project has been finalized and the other details on how to implement are still in discussion between the line ministries of the two governments. The press recently reported that Finance Minister Iipumbu Shiimi was expected to finalize the loan agreement with China for the project after the Asian giant gave the go- ahead for a ‘special financial package’. -- Finalizing the loan facility for the airport expansion is one of the priority projects that Shiimi has to deal with as outlined in his targets set by President Geingob. Funding for the airport upgrade to international standards forms part of the USD 60 billion in new development financing for Africa pledged by Chinese President Xi Jinping in Beijing in 2018. #1127.6

The NAD 250 million construction project to alleviate congestion at the terminal and apron of ‘Hosea Kutako Airport’ within the short-term was expected to be completed by September 2020. This was confirmed by Namibia Airports Company (NAC) chairperson, Leake Hangala, during a media briefing at the airport. Hangala explained that the project, funded by the Ministry of Works & Transport to the tune of NAD 155 million and an additional NAD 95 million from NAC’s own coffers, also aims at doubling the handling capacity of the airport to increased passenger movements up until 2030. Hangala added that in order to address inefficiencies and ineffectiveness of NAC’s existing organizational structure in propelling the company to deliver on its mandate, a new structure for top and middle management has been developed and approved. NAC has been tasked to develop and manage Namibia’s aerodromes in line with national and international civil aviation regulations. Said Hangala: “Given the significant and critical role played by airports, and invariably the NAC in the Namibian economy, in developing and promoting economic growth, we have the very important task and mandate to ensure that the organizational strategies are streamlined to promote trade and investment; travel and tourism and to meet the objectives outlined in the National Development Plan 5, Harambee Prosperity Plan, with the view to position Namibia as a logistic hub and to ultimately contribute towards improving the livelihood of each and every Namibian citizen.” While admitting that the NAC has been a source of concern to Government and the public, Hangala stated that NAC’s performance has significantly changed over the last 12 months. The organization is stabilizing and concerted actions have been undertaken to improve service delivery; to ensure continuous engagement with our stakeholders internally and externally in improving service delivery and to ensure that the company fully complies with all laws, rules and regulations that governs its operations. More, improved financial management systems and processes are in place to ensure that the organization meets its operational expenditure within its operational income and that the organization is dedicated to ensure that its employees live up to its core values to restore its brand value and confidence of all our stakeholders,” Hangala added. He added that to ensure NAC manages airports on sound business principles and with due consideration of all stakeholders, it is imperative that the

Page 5 of 11

25 August 2020 No. 1127 DEV

company continues to adhere to the national and international civil aviation regulations. NAC has also prioritized the development of a five-year strategic plan that it envisages to have in place by April 2020. NOTE: Because of the corona crisis affecting air travel worldwide, there are no flights at Windhoek Airport at present. #1127.7

Airports Company Chief Executive Officer Bisey Uirab hand-picked a company to study the long-term renovation of ‘Hosea Kutako International Airport’. That renovation is linked to the NAD 7 billion airport upgrade tender that was cancelled by President Hage Geingob four years ago for alleged corruption and kickbacks. The proposed changes are not linked to the NAD 250 million upgrades which began in mid-2019. Even though the cost of the long-term upgrades is estimated to be around NAD 4 billion, the latest tender process appears to kick off on the wrong foot, like the previous one. /Uirab wrote to Finance Minister Calle Schlettwein, informing him that they had hand-picked a company – without advertising – as a consultant to carry out the airport’s renovation feasibility study. These are the same consultants who worked on the on-going NAD 250 million short-term upgrades to the airport. “NAC went on to appoint the consultants currently engaged with the Hosea Kutako congestion alleviation project, led by Lithon Consulting Engineers,” Uirab said, adding: “This was done after a 6 August 2019 meeting between Finance, Transport and NAC officials.” -- NAC officials have over the years used urgency to push through dubious tenders, including the NAD 250 million airport tender in which companies were hand-picked. #1127.8

The Tsumeb Town Council has handed over a site to South African investor MKP to build an international airport and a university. According to Tsumeb's Mayor, the long-awaited development will create jobs and boost the town's economy upon completion. #1127.9

SOUTH AFRICA While international passenger flights remained prohibited, with the exception of those authorized by the Transport Minister, seven more airports were set to resume operations. At an aviation industry briefing, Transport Minister Fikile Mbalula said in addition to the airports (OR Tambo, Lanseria, Cape Town International, and King Shaka International) that are currently operational, the following would open on 1 July: Bram Fischer International, Kruger Mpumalanga International, Pietermaritzburg Airport, Port Elizabeth International, Richardsbay Airport, Skukuza Airport, and Upington International. “As more airports are opened, this will naturally increase the number of passengers at airports and, therefore, measures have been put in place to ensure that passengers are prepared for their experience at the airports to avoid congestion, mainly at security check points,” said Mbalula, noting that operations will have to be managed properly from 1 July. The Minister said to date the South African Civil Aviation Authority (SACAA) has received about 117 standard operating procedures (SOPs) from industry and more than 87 have been approved. While sanitizers are classified as dangerous goods, the SACAA has made provision for the carrying sanitizers in limited quantities as a safety measure and in compliance with existing regulations to prevent the spread of the corona virus. For the smoother facilitation of passengers at airports, operators have urged the flying community to arrive at least two hours early to allow for sufficient time to process passengers, while adhering to the screening requirements – as per the regulations. In addition, SACAA has also reviewed its earlier decision of ‘no catering’ on board aircraft by permitting airlines to provide pre-packed meals, which must be placed in front of the seat for each passenger before passengers board the aircraft. This will allow for minimized movement during flights. Mbalula said the decision to open more airports was one made after the Government had conducted inspections at the airports and was satisfied with the developments. General aviation is permitted for the following purposes: Approved regional re-positioning flights for all South African and foreign registered aircraft into and from South Africa for return after maintenance and

Page 6 of 11

25 August 2020 No. 1127 DEV

repair, to perform maintenance and repair, or to continue with contractual work within South Africa or foreign countries within the region; Exchanging of crew members operating in foreign countries as and when required; Transporting of aviation technicians, mechanics and engineers internationally for essential support and assistance to aircraft; Proficiency flights – provided that the flight is authorized by the SACAA and remains within the general flying area, airfield or airport boundaries, and recreational aviation is permitted for proficiency flights under th4e same conditions. #1127.10

The Gauteng Provincial Government has unveiled a new USD 30.7 billion development plan for the province over the next decade. The documents show that the construction will be implemented along five development corridors that have distinct industries and different comparative advantages. These corridors are: The Central Development Corridor, anchored on the city of Johannesburg as the hub of finance, services, information and communication technology, and pharmaceutical industries; the Eastern Development Corridor, built around the economy of the Ekurhuleni metro as the hub of manufacturing, logistics and transport industries; the Northern Development Corridor, anchored on Tshwane as the administrative capital city and the hub of the automotive sector, research, development, innovation and the knowledge-based economy; the Western Corridor, encompassing the economy of the West Rand district and the creation of new industries, new economic nodes and new cities. The Southern Corridor, encompassing the economy of the Sedibeng district and the creation of new industries, new economic nodes and new cities. “In the centre and in all four corners of the province, the development of economic corridors was under way,” the authors state. “This monumental strategy had forever altered the sole reliance on a skewed capital-intensive productive base, dominated as it had been by large enterprises principally operating in only three of Gauteng’s metro areas.” The Northern Development Corridor will unlock over USD 3.7 billion in investment which will go towards the development of a new high-tech special economic zone and automotive special economic zone; the development of the Rosslyn Auto City; the continued development of Menlyn Maine; Consolidating and regenerating existing areas (CBD, Centurion and Silverton); and revitalizing infrastructure in townships to create economic opportunities. The Eastern Development Corridor will unlock over USD 12.3 billion worth of investment which will go towards the construction of the new OR Tambo University of Science and Innovation; the development of the OR-Tambo logistics gateway; the Prasa-Gibela rail manufacturing hub in Nigel; the expansion of the OR Tambo International Airport (JNB); the development of new industrial development zone for jewelry manufacturing; the development of new agro-processing and fuel-cell technology; and Major Private Sector developments taking place along R21 highway. The Central Development Corridor will unlock over USD 12.3 billion in investments for the revitalization of the Joburg inner-city; the development of new mega-projects in the south from Soweto to Orange Farm; and the revitalization of townships. The Western Development Corridor will unlock over USD 1.5 billion worth of investment that will go towards the expansion of Lanseria Airport (HLA) and new Lanseria Smart City development; the expansion of the Busmark bus manufacturing plant; and the development of the Agro-processing Mega Park & Logistics Hub on the N12 highway and other private sector mega projects. The Southern Development Corridor will unlock over USD 1.2 billion investment which will go towards the new Savannah City development; the development of the Vaal River City and the Vaal University Village precinct; the development of a cargo airport and logistics hub; and the development of Vaal Marina and logistics, plus mining investments in Lesedi. #1127.11

Durban’s King Shaka International Airport (DUR) has retained its position as the fastest growing international airport in South Africa, according to officials at the Airports Company of

Page 7 of 11

25 August 2020 No. 1127 DEV

South Africa (ACSA) and Dube TradePort. Overall, the airport grew by around 6.5% in 2019 over 2018 and surpassed the 6 million passenger mark for the first time, handling just over 6.26 million passengers. The airport was boosted by growing passenger numbers on both the domestic and international side, with December being a bumper month showing double-digit overall growth. King Shaka International Airport, which is at the heart of the Dube TradePort SEZ, north of Durban. It was a record year on the international front for the airport, with more than 400,000 international passenger arrivals and departures in 2019 (+9.7%). The growth in international passengers comes on the back of British Airways launching a three times weekly direct route between London and Durban in late 2018. Dubai-based Emirates, which has been operating a daily flight to the airport since it opened in 2010, operated a second flight on the route between late June and August 2019. While King Shaka International showed noteworthy growth in the face of SA’s flagging economy, passenger growth slowed at ACSA’s larger OR Tambo International (JNB) and Cape Town International (CPT) in 2019. OR Tambo grew overall passenger numbers by 2.2% (to just below 21.7 million), while Cape Town saw around 2% growth (just below 11 million). Domestic passenger growth supported this growth at both airports. International passenger growth was flat. ACSA’s fastest growing airport overall was East London Airport (up more than 13%), but the Eastern Cape airport does not handle international passengers. Commenting on King Shaka International’s performance, Hamish Erskine, CEO of Dube TradePort Special Economic Zone (SEZ), said that 2019 was another milestone year of strong growth for the airport. Erskine, who is also co-chair of the Durban Direct route development initiative, added: “It’s a great achievement, especially considering that South Africa’s economic growth is below 1% currently. King Shaka International’s growth is particularly encouraging as it places the airport and adjoining Dube TradePort SEZ in a good position for greater growth when the country’s economy picks up.” He noted that the growth on the international passenger side is a direct result of intensive collaboration as part of the Durban Direct initiative, which includes airline partners, ACSA, tourism authorities, provincial and local government, and other stakeholders. “Since establishing this route development programme in August 2014, we have successfully secured six new routes. Durban is now connected to a network of over 700 destinations around the world through its current airline partners operating from King Shaka International,” he said. “These include Emirates, British Airways, Qatar Airways, Turkish Airlines, Air Mauritius, and Air Namibia among others.” Qatar Airways also increased capacity on its service by putting a bigger A350 aircraft on their route.” Meanwhile, Colin Naidoo, Communications and Corporate Affairs Manager for ACSA at King Shaka International, says that despite SAA cancelling several flights to Durban (and other routes as part of its restructured flight schedule) this capacity will be taken up by other domestic airlines. King Shaka International Airport's air cargo traffic witnessed a 47% growth for the 2019 calendar year. Following the increased capacity in Durban's airfreight market as British Airways operated three flights a week to London and Qatar Airways introducing a larger A350 on the Durban-Doha route, as well as Emirates introducing an additional four flights a week from mid-June to early August 2019 in response to the growing, passenger demand for travel during this period. #1127.12

Cape Town International Airport (CPT) was set to receive an estimated ZAR 7.5 billion capital investment over the next five years. By 2024, CPT was expected to boast a new, realigned runway, as well as revamped domestic and international terminals, says Airports Company South Africa (ACSA) Corporate Affairs Senior Manager Deidre Davids. The airport’s current primary runway is too close to the terminal buildings. By realigning and moving it, space for the future eastward expansion of the terminals will be available. The realigned primary runway will be 3,500 m in length and will be built to international Code F specifications for larger aircraft. Parallel and rapid exit taxiways will also be added. The project to realign the runway will cost in the region of ZAR 3.8 billion.

Page 8 of 11

25 August 2020 No. 1127 DEV

The highlight of the new domestic arrivals terminal expansion will be an express exit route available to passengers who only have ‘carry on’ luggage and do not need to collect bags, says Davids. The development will also see the size of the baggage hall increase significantly to accommodate additional baggage collection carousels. A reconfigured layout will see a new, bigger meet-and-greet area. The current retail area will also be expanded. This project will take about 2.5 years to construct and commission. The cost of the project will be about ZAR 688 million, with construction planned to start early in 2020. Construction on the project will take about 30 months. The 71% increase in passengers through the international terminal over the last five years means that this facility will soon reach capacity. If all goes according to plan, construction on the new international terminal could be completed in December 2023. The cost of the project will be an estimated ZAR 2.8 billion. A professional team has been appointed to work on the tender documentation. The project will see the expansion of the check-in area for international passengers, as well as the addition of two baggage collection carousels. There will also be a reconfiguration of the security, customs, passport control and arrivals meet-and-greet areas. The upcoming expansion programme is linked directly to facilitating the current and future growth of the Western Cape’s main airport. “It is important that the airport is able to meet growing passenger and cargo demand. The new runway and associated infrastructure will facilitate greater air access into Cape Town and the Western Cape and will enable growth of passenger and cargo traffic that is essential for tourism and economic activity,” Davids said. CPT has seen strong growth over the last three years, with total passengers using the airport increasing from 8.4 million in the 2013/14 financial year to 10.8 million in the 2018/19 financial year. International passengers making use of the airport have increased from 1.4 million in 2013/14 to 2.4 million in the 2018/19 financial year – a 71% increase. The growth in passenger numbers can be attributed to the Air Access initiative, notes Davids. This initiative is aimed at retaining the current airline base and attracting new airlines. “Since its inception, we have seen 15 new routes and 19 route expansions to and from the airport.” Cape Town was lately linked directly to cities and countries such as Singapore, Switzerland, Vienna and Hong Kong. A direct flight to New York was added by United Airlines. -- CPT has been named Africa’s leading airport for three years running by the World Travel Awards, as well as the best airport in Africa for four years running by Skytrax. #1127.13

South Africa’s fourth busiest airport, Lanseria International (HLA) in western Johannesburg, is planning further infrastructure expansions, following the completion of a new ZAR 210 million, 1,000-bay, multi-storey parkade. With the privately-owned facility set to hit the 3 million annual passenger capacity mark within the next 18 months, Lanseria International Airport CEO Rampa Rammopo says it is looking to invest some ZAR 2 billion to double its capacity to 6 million passengers by 2028. He says the masterplan includes establishing an “airport city” around Lanseria, that will include hotels and offices as well as a connection to the Gautrain network as part of its future expansion via Fourways. “This project is part of a much larger strategic commitment we are making to develop world-class infrastructure around the airport. We are looking to invest around ZAR 1 billion as part of our current three- to five-year expansion plan that will see the airport increase capacity from 3 million to 4.5 million passengers annually. In addition to the new parkade, we are currently investing around ZAR 100 million in upgrading the terminal building and are planning our first hotel within the airport precinct,” he adds. #1127.14

The Coega Development Corporation (CDC) is working on an application for a full-scale feasibility study into the development of a new airport in Port Elizabeth, in close co-operation with the Department of Trade & Industry. The Nelson Mandela Bay metropolitan municipality had

Page 9 of 11

25 August 2020 No. 1127 DEV

announced plans to relocate Port Elizabeth Airport to the Coega Special Economic Zone. CDC's head of Marketing, Brand & Communications, Ayanda Vilakazi, said the city’s proposal forms part of its spatial development plans to free up land for human settlements. “Development of an airport at the Coega SEZ has formed part of the Coega development corporation’s master development plan since inception and plans are at an advanced stage,” Vilakazi said. The CDC’s plan for the development of an airport at the SEZ was presented to, and approved by, the City Council in 2018, with the CDC having since attended to technical aspects of the proposed airport development and completed a pre-feasibility study. #1127.15

A way forward for Wonderboom National Airport on either commercializing or selling it needs to be found after a report submitted to the City of Tshwane Council has revealed the shocking state of the airport, including allegations of ‘irregularities, maladministration and governance lapses’ at the facility. The metro region has spent around ZAR 50 million on the maintenance of the airport but just received about ZAR 20 million in revenue. A consultant, Ntiyiso Consulting, was expected to develop the airport as an international gateway and take advantage of the opportunities to expand the metro’s economy to a globally competitive metropolitan economy. Ntiyiso was expected to carry out several tasks including diagnosing the problem, recommending and implementing specific actions and/or projects including costs to reposition the airport “into a suitable world-class airport”. Review and design plans were set to include technical, financial and legal framework; limitations of a current feasibility study; alignment of the business case to the metro’s strategic plan; labour relations issues; legislative framework and implications of the commercialization plan; capacity gaps and current operational needs. The firm was also expected to draft a comprehensive business plan through, among others, considering both internal and external factors with respect to the commercialization of the airport, handle stakeholder management and fundraising. The firm was also expected to manage the airport, handle procurement along with its transformation and implementation through overseeing change management processes, project management support, contract management and supervision along with monitoring and evaluating the overall commercialization of the airport. The objectives set for the commercialization of the airport were to eradicate subsidies; a five-year strategic plan and annual performance plan; long-term financial sustainability and economic growth through a new economic hub. The report was compiled by the City of Tshwane's oversight committee for roads and transport and was tabled in the City Council on 31 October 2019. It includes allegations of embezzlement, non-compliance with international and domestic aviation standards and states that Wonderboom "is an asset in serious need of attention by an authority higher than the City". The committee has recommended a full forensic investigation into the state of the airport. In its report submitted to the Council, the committee concluded: "The status of the airport and findings of the committee as presented herein demonstrates an urgent need for intervention and thorough investigations, to establish facts which resulted in the current state of affairs". The airport has been besieged by problems, and lost its contract with SA Airlink in April 2018, because of "political instability in the Metro", according to the report. A fuel provision contract with BP lapsed in December 2018 and a new fuel provision plan, approved in 2017, hasn't been implemented. The committee found that the airport has deteriorated in the last two years especially. The committee suspects embezzlement. -- The airport, operational since 1937, is supposed to open up the city to international investment markets. #1127.16

BOTSWANA Botswana is a beacon of success when it comes to economic and social management. The country moved from being one of the poorest nations in the world in 1966 (the year it achieved independence) to middle-income status by the 1990s, largely owed to its abundant mineral wealth. Today, Botswana is stable. Its multi-party democratic system is sound, and GDP continues to rise with a

Page 10 of 11

25 August 2020 No. 1127 DEV

4.5% growth rate having been recorded in 2018. Questions do, however, remain about the country’s future, as the World Bank and the UN outline the need for it to diversify away from the limitations of its diamond-led development model to ensure sustainability in the long term. Bolstering water security and electricity generation, strengthening public-sector performance and improving transport are all elements to this, the latter deemed particularly crucial in the eyes of Kabo Phutietsile, CEO of Civil Aviation Authority Botswana (CAAB), given Botswana’s landlocked status. “Why is aviation such an exciting industry to be involved in right now?” he states. “For me, its the role that it can play in upholding the economy of any country. Research has shown that aviation brings enormous benefits to communities and economic growth around the globe. It enables social development while providing connectivity and access to markets. As a tourism destination, Botswana can and should tap into the opportunities provided by aviation and its related activities.” Phutietsile is tasked with heading up the organization that can provided an enabling environment for these economic opportunities to flourish. Established through the Civil Aviation Authority Act of 2004, the regulator has been acting autonomously for more than a decade, facilitating the development of air transport and air navigation services, and advising the national government on all aerospace aspects. Crucial to the success of aviation are airports. Six such transport hubs (four international and two domestic) can be found within Botswana, accompanied by 19 airfields scattered across the country that are typically used for medical rescues and landings in remote tourism locations. “CAAB has a duty to ensure all airports and airfields in Botswana are in good and usable conditions at all times,” Phutietsile explains. “As such, the Authority continuously carries out maintenance services and upgrades of existing airports and airfields. During the period under review, we carried out a number of maintenance services and development activities in all our major airports and airfields.” Looking at Gaborone’s ‘Sir Seretse Khama International Airport’ (GBE), the country’s largest transport hub, this is particularly prevalent, the authority having cultivated grand plans to enhance its role by working closely with the Special Economic Zone Authority (SEZA) to deliver a masterplan for the airport’s extended development. Phutietsile explains: “The airport’s Land Use Master Plan, which is a blueprint for the future development of the airport in the short to long term, was approved by the Gaborone City Council Planning Board in June 2015. CAAB had planned to appoint a transaction advisor to assist with the funding models for the development of the basic infrastructure. However, the appointment of the transaction advisor was aborted following the engagement of SEZA who had indicated that they were carrying out their own masterplan. This led to the collaboration between both SEZA and CAAB in the development of the CAAB-affected land during the April 2016 to March 2017 period. The discussions between CAAB and SEZA have since led to the signing of a memorandum of understanding, whereby the two masterplans have been integrated.” Kasane International Airport recently underwent expansion works to accommodate future growth and increase flight capacity, providing improved connections to Chobe National Park in particular – a key tourist destination. The runway length was upgraded to 3,000 m to facilitate the landing of the Boeing 737 800 or equivalent class aircraft. The terminal building now has two departure lounges, two arrival lounges, shops, restaurants, office spaces, and a management office. Maun International Airport is also receiving works, CAAB is overseeing the construction of a new terminal building that is slated for completion in mid-2020. These developments are set to be critical in supporting the continued growth of key facets of Botswana’s economy such as tourism and trade. CAAB is well on track to achieve its mission of becoming a world class provider of safe, secure, sustainable aviation services. The organization has also begun to leverage the power of new technologies, now running sophisticated air navigations services (ANS), bolstering the efficiency and effectiveness of its air traffic, communications and aeronautical information services, as well as its search and rescue efforts. #1127.17

Page 11 of 11

25 August 2020 No. 1127 DEV

MOZAMBIQUE The Government had launched an international public tender for the concession, construction, and operation of commercial developments at the Maputo, Beira and Nacala airports. According to the local newspaper Domingo, Maputo International Airport offers an opportunity for a shopping centre, a petrol station, and business apartments. In Beira, the Government is looking for an investor to build and operate a three-star hotel and a petrol station, while in Nacala, Government is looking to build a hotel, shopping centre, and a renewable energy plant. The Ministry of Transport & Communications has invited interested parties to express their interest to enter into partnerships for the development and operation of hotels and leisure activities, business and entertainment centres, and renewable energy sources. -- Maputo Airport is by far the largest in Mozambique, attracting 50% and 65% of total freight and passenger traffic (domestic, regional, international), respectively. Studies conducted prior to the start of the project showed that the state of runways and lighting equipment are indeed a safety issue. None of the runways comply with ICAO guidelines and require upgrades. #1127.18

The Mozambican airport company (AdM) is currently making operational losses of USD 2.4 million a month because of the Covid-19 pandemic, according to Transport Minister Janfar Abdullai. The longer the crisis lasts, the heavier will be the company’s losses. Abdulai feared they could reach USD 3.4 million a month. Almost all international flights in and out of Mozambican airports have been suspended. The exception is Ethiopian Airlines, which is still operating two flights a week between Maputo and Addis Ababa (before the pandemic, these flights were daily). Mozambique Airlines (LAM) now flies only on domestic routes. -- Abdulai was speaking to reporters at Chonguene, in the southern province of Gaza, where a new international airport is planned, thanks to funding from China. The airport is about 50% complete, and construction work was scheduled to be finished by May 2021. But since most of the raw materials have to be imported, this deadline is now under threat. Abdulai said everything is being done to avoid complete paralysis of the work at Chonguene. The contractor has continued to work on the terminal building, “which gives us a certain encouragement”, he added. Many of the Mozambican workers recruited for the construction have been laid off, and just 23 are continuing to work. Abdulai said they are living in isolation to avoid possible contamination. But the main problem for the Chonguene airport is not when the terminal building will be completed. It is whether any air companies will want to fly there. The main reason for foreigners to visit Gaza is tourism – the province contains wildlife reserves such as the Limpopo and Banhine National Parks, and unspoilt beaches. But Covid-19 dealt a blow to tourism across the globe. Even if the tourism lodges reopen in the not too distant future, the flow of tourists to southern Mozambique is unlikely to reach its former levels for years, if ever. An airport at Chonguene risks being an expensive white elephant, with the state-of-the-art facilities at a modern terminal, but few flights. #1127.19

WORLDWIDE AIRPORT TENDERS (WAT) portal with daily project alerts, the exclusive, customizable business opportunities portal dedicated to the airport industry by Momberger Airport Information. FREE trial for 7 days - follow this link for more information and to sign up for your free trial.