#1infrata 大成DENTONS PROSERVE ENERGY TEMPLARS CIENA FOUR AIRPORTS PPP NIGERIA PROJECT DESCRIPTION#2PROJECT 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. ABUJA 4.2 MPPA LAGOS 6.7 MPPA MURTALA MOHAMMED AIRPORT LAGOS KANO 0.5 MPPA PORT HARCOURT 1.1 MPPA FOUR AIRPORTS PPP Page 2#3NIGERIA 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 Domestic International Total Growth With 6.7 million passengers, Lagos Murtala Muhammed International 14.0 40% Airport is Nigeria's 35% largest airport, 12.0 followed by Abuja 30% Total Passengers, Millions 10.0 25% 20% 8.0 15% 6.0 10% Total Growth 5% 4.0 0% 2.0 -5% 0.0 -10% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 PASSENGERS, M 6.7 9.0 10.2 11.8 12.6 12.2 12.8 13.3 12.6 12.4 AIR NIGERIA O N Issues MMA2 Failure Nnamdi Azikiwe International Airport (4.2m). Despite the country's higher GDP per capita, Nigeria's propensity to fly is relatively low compared to other African countries. Route network out of the four airports is dominated by domestic services operated by Arik Air, Dana Air, Air Peace etc. Foreign airlines mostly focus on economic trade links, diaspora and Hajj markets. Source: FAAN FOUR AIRPORTS PPP Page 3#4NIGERIA GROWTH POTENTIAL - PROPENSITY TO FLY CATCH UP LARGE POTENTIAL WHEN CAPITALISING ON THE POPULATION, CURRENT PROPENSITY TO FLY WELL BELOW PEERS 0.8 0.7 0.6 Morocco Dem. Rep. Congo Propensity to fly 00.5 Ethiopia 0.4 Uganda 0.3 Egypt Tunisia 0.2 Kenya, 0.1 Ghana Nigeria Angola Tanzania 0.0 0 Algeria South Africa 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000 GDP per capita, 2016 (in constant US$) FOUR AIRPORTS PPP Page 4#5Population, Millions LARGE POPULATION GROWTH HISTORICAL AND FUTURE POPULATION HAS DOUBLED SINCE 1990 AND STILL HAS A FERTILITY RATE OF 5.07 AS OF 2017 450.0 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 Source: United Nations and World Bank 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 TREND FORECAST TO CONTINUE BY UN AND WOLD BANK 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 FOUR AIRPORTS PPP Page 5#6INFRASTRUCTURE AND NEW TERMINALS CONSTRUCTION OF 4 NEW TERMINALS ONGOING ABUJA LAGOS • • 56,000 sqm 15 mppa capacity • 3,000 sqm Duty Free area 8 boarding bridges Recently complete major runway overhaul MURTALA MOHAMMED AIRPORT LAGOS 48,000 sqm Remodelling of existing terminals plus new terminal doubles capacity to 30 mppa Boost current constraint airport facilities KANO CEXIT IT PORT HARCOURT • Relatively new existing terminal from 2011 Advanced state of construction of new terminal Will multiply current capacity Advanced state of construction Will multiply current capacity FOUR AIRPORTS PPP Page 6#7NIGERIA LEGAL CONTEXT Civil Aviation Act 2006 Civil Aviation Regulations ICRC Act 2005 / PPP Regulatory Commission Bill Procurement New Legislation FOUR AIRPORTS PPP Page 7#8PROJECT ROADMAP PHASE 1 PHASE 2 • POLICY AND BUSINESS CONTEXT • Inception Report Policy, Legal and Business Context Report Policy and legal review Traffic growth Operating performance Infrastructure review PPP Business Options Report Local and international examples Legal review of options Assessment and recommendations. V PPP PROCUREMENT Draft Outline Business Case (OBC) Report Policy, Legal and Business Context PPP Options and recommendation PPP Project Assessment Demand & Traffic Forecast Technical & Operational Assessment Financial Analysis Legal Review Value for Money Assessment Social & Environmental Review Risk Assessment Implementation recommendations Final OBC Report Procurement Report Pre-qualification (RFQ) Tendering process (RfP) Bid submission Bid evaluation and recommendations Winning bidder selection Final Full Business Case Report • PHASE 3 FINAL PPP CONTRACT NEGOTIATIONS Closeout Report Negotiate Concession Agreement and other documentation Achieve Financial Close FOUR AIRPORTS PPP Page 8