PPP in Airport Infrastructure Business Aéroports de Paris Experience

Transcription

1 PPP in Airport Infrastructure Business Aéroports de Paris Experience Dead Sea Jordan - June 6 th & 7 th,2010

2 Aéroports de Paris Group International Operations Major companies within the group International operations 100% 100% International airport Engineering management 100% 100% Aéroports de Paris Management Overseas Airport Operations and Partnership Fully dedicated Structure and Financial Resources to Airport Public-Private Partnerships 25 airport portfolio Provides Training through ADP training facilities Group handling 1) Retailing in airports Handling Subsidiaries Handling services 50% 40% Telecom operator Roissy Sogaris Freight logistic centre (Paris) ADPi Major fields of activity Master planning Architectural & Engineering Design Works supervision Project Management More than 50 years experience 80 countries around the world 2 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

3 Aéroports de Paris Group International Operations Selection of Major Projects Investor Operator_ ADPM Planner _ ADPi Designer _ ADPi 13 Airports - North Central Group of Airports Mexico 14 million pax 25.5% & Operator 5 regional Airports Egypt 14,5 million pax Operator Amman QAIA Jordan 4 million pax 9.5% & Operator Hajj Terminal Jeddah Saudi Arabia Algiers Airport Algeria 4 million pax Operator Beijing Airport China 48 million pax 9,9% (sold in 2007) Liege Belgium 25% Mauritius Airport 10% Dubai Jebel Ali UAE (Master Plan) Seoul Incheon Korea (Master Plan revision) Nantes ND des Landes France (Master Plan) Nice France (Master Plan) Cairo Egypt (Master Plan) Bogota - (Master Plan) Lybia Irak Dubai DXB UAE (Terminal 3, A380 Hangars) Doha Qatar (ControllTower, A380 Hangars, Amiri Pavilion, Cargo) Au Dhabi (Control Tower ) Saudi Arabia ( Hajj Terminal - New international - Jeddah) Moscow Sheremetyevo Russia (Terminal 3) Fort Lauderdale USA (Terminal 4) Nice France (Terminal 2) Toulouse France (A380 Plant) Sevilla Spain (A400M Plant) Lybia New Terminal Tripoli 3 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

4 Aéroports de Paris Management Current Portfolio Orly (100%) m pax - Operator Liège Airport (25%) tons of freight - 0.3m pax - Strategic partner Jeddah (Hajj Terminal) Saudi Arabia - 14m pax - Management contract CDG (100%) m pax - Operator Amman Jordan (9.5%) - 4m pax - Management contract - Strategic partner Algier Airport - 4m pax - Operator Cambodian Airports - 3m pax - Assistance in management 13 regional airports Mexico North Central (25.5%) - 14m pax - Operator - Strategic partner Conakry Airport (29%) - 0.2m pax - Operator 5 regional airports in Egypt - 15m pax - Operator Mauritius (10%) - 2,6 m pax - Operator Strategic Partner Source: ADP 4 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

5 PPP in Airport Infrastructure Development ADPM Experience ADPM has been involved in many different successful airport transactions involving Public Private Partnership in the Region Airport Transaction Government Objective Characteristics QAIA Amman Jordan 5 mpax EAC Egyptian Airport Company Sharm el sheik Hurghada Aswan Abu Simbel 18 mpax Develop new terminal infrastructure to handle more than 9 millions pax Upgrade airport infrastructures Increase Level of service quality standards Transfer Construction risks Develop and open new Airport infrastructures in the major tourism airport of the country Improve level of service Recruit and Train properly airport staff Keep control on airports as a major strategic asset for the country 100% BOT / concession given to a concession mixing Operator, contractor and investors Terminal Design imposed by the Government Selection criteria was the Concession Fee Obligation set up in a concession agreement 25 year concession IFC, IDB and commercial funding Management contract Management delegation given to the operator representatives 6 year contract No equity involvement but remuneration based on performance (% Ebitda growth) with KPI obligations 5 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

6 PPP in Airport Infrastructure Development ADPM Experience Aéroports de Paris has been involved in many different successful airport transactions involving Private Partnership in the Region Airport Transaction Government Objective Characteristics Hajj Terminal Jeddah Saudi Arabia 4,0 mpax Increase the Hajj Termina!'s passenger capacity and service quality standards and Develop a new terminal infrastructure to handle Hajj and Umrah pilgrimage design capacity 4 mpax Turn the Hajj Terminal into a commercially viable and selfsustaining business, independent of financial subsidies from the Government; Introduce private sector financing and technical know-how; 100% BTO / concession given to a concession company 100% owned by SBG / contractor plus support from ADPM / operator Terminal Design part of the selection process (design done by ADPi) Selection criteria was the Passenger charge and technical mark Obligation set up in a concession agreement 25 year concession Islamic (IDB)and commercial funding Operating Company jointly owned by SBG and ADPM 6 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

7 PPP in Airport Infrastructure Development ADPM Experience But also in other parts of the world Airport Transaction Government Objective Characteristics Being International Airport China 58 mpax OMA North central Group Mexico 14,1 mpax Fund Terminal 2 construction and future Project Improve Corporate governance & Management Develop Beijing into an International Hub Upgrade 13 airports of North central Area Improve corporate Governance Find funding for Government infrastructure Projects Liège Airport Involve an international airport Operator in the Airport Development (cargo) Fund airport development ADPM selected as Strategic partner with Management contract ADPM 9,9% owner one Board seat IPO On Hong Kong Stock exchange for 35% -Including ADPM shares 15% Strategic Parnership share given to a consortium including an Operator (ADPM 24,5%) with specific control rights Specific Obligations under a concession agreement 49 years concession IPO after 5 years on remaining shares Creation of a dedicated public company 25% shares given to an Airport Operator with specific rights Involvement in Executive Committee and Board 49 years Concession to Liège Airport 7 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

8 PPP in Airport Infrastructure Development ADPM Experience But also in other parts of the world Airport Transaction Government Objective Characteristics Mauritius Airport 2,7 mpax Develop new terminal infrastructure to handle more than 4 millions pax Improve level of service Keep control on airport as a major strategic asset for the country Partnership between Government airport entity and Airport operator Strategic partner - in a dedicated company Specific rights given to the airport operator 15 years concession Concession agreement including all obligations Design ADPi Chinese Exim Bank funding 8 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

9 Jordan - Reform of the Aviation Sector HK of Jordan s strategy for aviation sector Review of sector policy Restructuring of the Civil Aviation Regulatory Commission Review and re-design of the legal and regulatory framework Increased role of the private sector in the Jordanian aviation sector 1 st major step: strategy for Queen Alia International Airport (QAIA) Upgrade the current facilities Develop a new 9 million passenger capacity terminal Increase quality of services and introduce international standards best practices Set QAIA as an environmentally-friendly airport Raise QAIA s revenues & profitability 9 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

10 QAIA Concession Agreement key aspects 25 year BOT Pre imposed design for the New Terminal (designed by Foster & Partners) Construction managed through fixed price turnkey EPC contract Major contractual obligations Delivery of the New Terminal in compliance with Fosters & Partners design Refurbishment / Improvements of the existing facilities Improvement of Operations (manuals & plans, certifications, customer management,..) Rehabilitation of the adjacent Alia Hotel and maintain a 4 star standard Annual Concession fee based on a gross revenue sharing with the Government Sponsors take full commercial & traffic risk, Airport regulated charges set up by the Government (with inflation adjustment mechanism) Significant incentives for the Sponsors Taxation holiday for 10 years Possible extension of concession of 5 years Debt is taken over by the Government in most instances of default Early termination payment terms by the Government to the Sponsors Force Majeure protection in the concession agreement 10 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

11 QAIA BOT - Consortium structure Diverse investor base providing airport operating experience, construction expertise and strategic financial investors. Shareholders Operator: Aéroports de Paris Management (France) 9.5 % JV Contractor: J&P Overseas (Cyprus) 9.5 % JV Contractor: J&P Avax (Greece) 9.5% Financial Investor: Abu Dhabi Investment Company (UAE) 38.0% Financial Investor: Noor (Kuwait) 24.0% Financial Investor: EDGO Ventures (Jordan) 9.5% Shareholders have to retain 100% of their shares for 5 years and 50% until year 8 11 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

12 QAIA BOT Transaction Legal Scheme ADPM Operating income and expenses O&M Agreement Concession Agreement Sponsors 100% Government Financial Investors Contractor Design Agreement EPC Contract AIG Concession Company Loan Agreements Regulation / Legal Framework Service Agreements Government Entities Foster & P. Banks Independant Engineer Agreements Indept. Engineer 12 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

13 QAIA BOT Transaction Pre financial close Timeframe Aggressive time line - Preferred bidder to financial close 7 months. Very efficient and Transparent Process Aug 2006 Dec 2006 Feb 2007 March 2007 April April 2007 Government Information Memorandum issued First draft of concession agreement First draft of concession agreement Final concession agreement Bids submitted Preferred bidder announced 23 May 2007 Aug 2007 Sept 2007 Nov Nov 2007 Execution of concession agreement Negotiations with Government on direct agreements Initial Credit committee approval from banks EPC & O&M Contacts signed Financial Close and take over of QAIA 13 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

14 QAIA BOT - Project Funding Overall project was closed at $680m Debt funding for the project : around $370m $110m from IFC through senior and subordinated facilities. $100m senior Islamic facility from Islamic Development Bank (IDB) $160m of senior debt is underwritten by a consortium made of European Arab Bank, Calyon and Natixis Equity is around $160m with additional $150m of internal cash generated by the operations of the existing infrastructure during construction 14 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

15 QAIA New Terminal New Terminal to be Constructed Based on the Foster & Partners design provided by the Government of Jordan One main processing terminal structure connecting two boarding piers with contact stands A split level layout with separated ground level arrivals and departure drop-off areas. 18 gates Constructed on the west side of the existing terminals on the current public access road 1 st Phase 9 millions pax to be implemented end of nd Phase 12 millions pax 15 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

16 QAIA New Terminal 16 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

17 QAIA BOT - Current status of Construction New Terminal Construction started in 2008 Substantial Completion end of 2011 Final Completion early 2012 About 32% of the works already executed 17 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

18 Current status Airport Operations Existing Terminals physical modifications and improvements Additional and improved services to Airlines and Passengers Implementation of International Regulations and standards: ICAO Certifications ISO Certification Major Traffic Growth since take over 3,8m Pax in 2007 expected over 5m in regular air carriers serving 62 destinations Several additional routes/carriers over the past 2 years, including low Fare airlines 18 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010

19 Thank you for your attention 19 ADPM Presentation AFD Semlnar Jordan 6 & 7:/06/2010