Presidente Nicolau Lobato International Airport PPP Investor - - PowerPoint PPT Presentation

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Presidente Nicolau Lobato International Airport PPP Investor - - PowerPoint PPT Presentation

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Lead Transaction Advisor Presidente Nicolau Lobato International Airport PPP Investor Conference Dili, Timor-Leste 7th March 2013 Photo by ECO-STRATEGIC.COM Disclaimer The purpose of this Project Brief is to provide preliminary background

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Presidente Nicolau Lobato International Airport

PPP Investor Conference

Dili, Timor-Leste 7th March 2013

Lead Transaction Advisor

Photo by ECO-STRATEGIC.COM

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Lead Transaction Advisor

Disclaimer

The purpose of this Project Brief is to provide preliminary background information on a potential opportunity to interested investors, and to solicit comments and feedback on issues that may be of concern prior to the Government of Timor-Leste (GoTL) finalizing a decision to develop a public-private partnership (PPP) for the Presidente Nicolau Lobato International Airport (Dili Airport) project. The Project Brief does not constitute any liability on the GoTL as well as the International Finance Corporation (IFC) as to the accuracy and completeness of the information contained herein.

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Lead Transaction Advisor

1 Project Background 2 Team & Timeline 3 Legal Framework 4 Traffic Forecasts & Aircraft Type 5 Runway & Precinct Options 6 PPP Options 7 Next Steps & Team Contacts

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Agenda

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Lead Transaction Advisor

Project Background

  • Presidente Nicolau Lobato International Airport in Dili (Dili Airport)
  • The only international airport in Timor-Leste, handled around 150,000

passengers per year (2012) through regular connections to Darwin, Denpasar and Singapore

  • Generally in poor condition and needs substantial improvement and

development to meet increasing passenger numbers and to support the tourist market

  • Government of Timor-Leste (GoTL) Objectives for Dili Airport PPP:
  • Boost tourism and other economic sectors by building stronger aviation links

with major Asian hubs, and will be putting in place the infrastructure needed to enable this growth and plans to join ASEAN

  • Improve the level of services and increase efficiency of airport services
  • Meet and maintain minimum level international airport standards set by

ICAO and IATA (Level of Service C)

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Lead Transaction Advisor

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Transaction Advisory Team

IFC is acting as GoTL’s Lead Transaction Advisor supported by Ambidji Group as Airport Consultants, Gide Loyrette Nouel and AFG Advogados as Legal Consultants, and WorleyParsons as Environmental and Social Consultants.

Contributor Location Role Edgar Saravia Hong Kong Program Manager Chris Bleakley Sydney, Australia

  • Sr. Investment Policy Officer

David Martz Phnom Penh, Cambodia Operations Officer Alexandre Leigh Dubai, UAE Investment Officer Deveshta Ratnanaygam Sydney, Australia Investment Analyst Gide Loyrette Nouel (GLN) AFG Advogados Paris, France Dili, Timor-Leste Legal Consultants Ambidji Group Melbourne, Australia Airport Consultants WorleyParsons Dili, Timor-Leste E&S Consultants

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Lead Transaction Advisor

Due Diligence & Structuring (Phase 1)

Mobilize Project: Team including IFC staff and external consultants.

  • Information gathering

and analysis by IFC airport technical consultant

  • IFC legal consultant

reviews legal and regulatory framework

  • IFC E&S consultant

prepare E&S Scoping Study

  • Assess PPP Options
  • Financial Modeling
  • Investor Market

Sounding

6 Nov 2012

GoTL mandates IFC

May 2012

Kickoff

  • Ongoing

consultations with GoTL on emerging technical, legal and E&S issues

Transaction Structuring Report (TSR)

April 2013 Jan 2013 Feb 2013 March 2013

  • Preparation of

draft Airport Master Plan, Investment Plan and Business Plan

Transaction Execution (Phase 2) Pending GoTL decision

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Lead Transaction Advisor

Legal Framework: Under Review & Discussion

  • Decree-Law 42/2012, or the Law Regime on PPPs
  • GoTL with support from ADB is drafting PPP regulations and Project cycles
  • Decree-Law 1/2003 governs aviation sector; key points include:
  • “provision of air transport services, running of airport public services and air

navigation support services” is the State’s responsibility

  • Definition: “public airfields equipped with installations and facilities to support

aircraft operations and embarkation and disembarkation of people and goods”

  • Decree-Law 3/2006, Decree-Law 6/2006 and Decree-Law 10/2006

establish tariffs that can be charged and collected

  • Major governing bodies as established by Decree-Law 8/2005
  • Civil Aviation Authority of Timor-Leste (AACTL): Government agency in charge of

supervising, regulating, monitoring and inspecting the civil aviation sector

  • Air Navigation Administration (ANATL): State Company in charge of operating

and managing national airports and air navigation infrastructures

  • Land ownership and Environmental Laws currently being reviewed

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Lead Transaction Advisor

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Traffic Forecast – Key Considerations

  • Strong GDP growth expected from existing and planned petroleum

developments driving domestic demand (GDP per capita growth ranging between 5%pa and 9%pa)

  • Tourism likely to be high-end rather than mass market and growth is

expected at 3.5%-6.5%pa initially, reducing to 2.5%-4%pa in longer term

  • Direct flights are anticipated to major Asia-Pacific hubs such as Hong

Kong, Brisbane, Sydney and Melbourne though commercial viability of these routes must be proven by airlines

  • Oil passenger traffic is expected to double in 2016; Base and High Cases

assume transit through Dili, Low Case assumes direct access to Suai

  • Domestic fixed wing service is assumed to develop in around 2015/2016
  • As traffic grows, airlines adjust capacity through removal of weight

limitations, then increased frequencies and finally with larger aircraft

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Traffic Forecasts

Passenger Demand

Dili Airport - Demand Forecasts - Total Annual Passengers Demand Year

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Lead Transaction Advisor

Passenger Composition

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Regional Accessibility & Aircraft Type

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Aircraft Type Available Seating

B737-800 176 A320 165 B787-8 243 A330-200 253

Ultimate aircraft range to target Asia-Pacific destinations is 2100nm

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Lead Transaction Advisor

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Proposed Master Plan Runway Development

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Master Plan Runway - Option 1

Ultimate Stage: Cross River – Runway 2500m x 45m – 300m Strip Width Initial Stage: Extend Seawall – Runway 2050m x 45m – 150m Strip Width

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Lead Transaction Advisor

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Master Plan Runway - Option 2

Initial Stage: Cross River – Runway 2100m x 45m – 300m Strip Width Ultimate Stage – Runway 2500m x 45m – 300m Strip Width

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Terminal Precinct Layout

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Lead Transaction Advisor

Landside Layout – Initial Stage

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Landside Layout – Ultimate Year 2036

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Technical Assistance Service Contract Management Contract Lease Contract Concession Contract

3-5 yrs 5-15 yrs 1-3 yrs 25-30 yrs

Private Sector Involvement Contract Duration

Siemens- LGW Baggage Handling contract Fraport- Cairo & KAIA/KKIA airports / ADP- Egyptian Regional Airports TAV-Izmir Airport Concession Lease GMR-Delhi Airport / TAV- Madinah Airport Vinci – ANA (Portuguese Airports) MAHB – Astana Airport

Models for Private Sector Participation

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Full Divestiture

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Lead Transaction Advisor

PPP - Key Considerations

  • Rehabilitate asset with strong growth potential;
  • Qualified experienced operational expertise required with full

responsibility over airport operations;

  • Incentivized for passenger / revenue growth;
  • Minimize whole- life cost of project; and,
  • Defined airport operations Key Performance Indicators (KPIs).

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Lead Transaction Advisor

Bidder Qualifications

Prequalification Criteria

  • Airport Operational Expertise
  • Construction / Project Management Expertise (aggregate experience on

$[x]m of projects + single project worth $[x]m)

  • Minimum Net Worth
  • Capital raising/financing track record

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Technical Financial

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Lead Transaction Advisor

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Next Steps

  • Discuss draft Master Plan to GoTL
  • Complete Legal Due Diligence Report
  • Complete E&S Scoping Study
  • Conduct financial analysis and market sounding of PPP

transaction structure

  • Prepare and present Transaction Structuring Report to GoTL
  • Launch PPP tendering process
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Lead Transaction Advisor

Lead Transaction Advisor Key Contacts

Name E-mail Phone Milissa Day mday@ifc.org Work: +670 332 4649 Mob: +670 7728 3213 Chris Bleakley cbleakley@ifc.org Work: +61 2 9235 6513 Mob: +61 404 893 335 David Martz dmartz@ifc.org Work: +855 2321 0922 Mob: +855 17 565 090 Alexandre Leigh aleigh@ifc.org Work : +971 (4) 360-1000

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