#1GRANTLEY ADAMS INTERNATIONAL AIRPORT Transaction Highlights and Process ⑧IFC International Finance Corporation WORLD BANK GROUP GAIA BARBADOS 'rising higher' Inc. Investor Conference Bridgetown, Barbados November 27, 2019#2Transaction Objectives Grantley Adams International Airport Inc. (GAIA Inc.) is seeking to identify a reputable private airport operator to expand and operate the airport Specific objectives include: ◉ Improving and expanding GAIA's infrastructure to meet current and future demand Introducing private sector management to improve operational efficiencies Improving service quality standards in line with international best practices ☐ Enhancing passenger experience Positioning GAIA as the airport of choice for interconnectivity within the Eastern Caribbean Mobilizing private sector investment in airport infrastructure IFC International Finance Corporation WORLD BANK GROUP GAIA Inc. BARBADOS "rising higher' 2#3☐ Proposed PPP - Concession Structure Objectives will be met by a concession whereby asset ownership and regulatory control remain with GAIA Inc. Private concessionaire will be responsible for financing, expansion, upgrading and operation of GAIA Operations and maintenance risks will be transferred to the concessionaire during the concession period GAIA Inc to be remunerated through a revenue share as an annual concession fee Proposed annual gross revenue share percentage with GAIA Inc. over life of the concession Performance managed through concession contract Will stipulate clearly defined performance standards and penalties for non compliance ATLET ADAMS INTERNATIONAL AIRPORT IFC International Finance Corporation WORLD BANK GROUP GAIA Inc. BARBADOS "rising higher'#4Investment Highlights ➡ GAIA represents an attractive investment opportunity: Highly supportive government, committed to a timely and transparent process Strong economic growth prospects for Barbados Strategically relevant asset to Barbados' economy Sole airport in Barbados, which serves as a regional gateway to destinations in the Eastern Caribbean ◉ Historic traffic with very low volatility HINTEN DANK INTERNATIONAL AIRPORT ■ ■ Well maintained and modern airport facility which has undergone substantial expansion and redevelopment Significant potential for non-aeronautical revenue and operational efficiency improvements Attractive tax regime with the lowest OECD-compliant corporation taxes in the world and a regressive tax structure IFC International Finance Corporation WORLD BANK GROUP GAIA Inc. BARBADOS "rising higher' 4#5Strong Growth Prospects ➡ Robust growth forecasted for passenger traffic and Barbados' ☐ economy Steady growth in passenger traffic in excess of 1.4% CAGR between 2009 and 2018 Passenger throughput expected to grow from 2.2 million pax in 2018 to 4 million by 2050 Future traffic development based on long-haul markets where potential exists for further increases (North America, UK & Continental Europe, South America) GAIA is strategically relevant, as tourism directly accounts for over 12% of GDP and as much as 40% of GDP indirectly* Barbados has substantially grown its tourism product recording 3 consecutive years growth in tourist arrivals* Barbados recognized as an international destination for pleasure as well as a destination of choice for business in the Caribbean* Sources: Barbados Statistical Service, * Barbados Tourism Investment Inc, **Caribbean Tourism Organization International IFC Finance Corporation WORLD BANK GROUP 678,537 TOURISTS 836,155 CRUISE- SHIP PASSENGERS US$ 1.2 BILLION VISITOR SPEND** 17,600 EMPLOYED 6,573 ROOMS* 2.2 MILLION PASSENGERS (2018) GAIA Inc. BARBADOS "rising higher' +A $ 5#6Supportive Legislative and Regulatory Framework ➡ Barbadian legislative and regulatory framework well developed ☐ Stable aviation policy which resides within the Ministry of Tourism and International Transport Signatory of the International Civil Aviation Organisation (ICAO) and adopts standards and recommended practices (SARPs) Mature framework which ensures legal certainty and stability to the Concessionaire and its financiers Economic regulation to be addressed contractually through the concession contract Technical regulation of the airport sector provided by the Civil Aviation Department Appropriate institutional structures in place to manage and administer the PPP IFC International Finance Corporation WORLD BANK GROUP GAIA Inc. BARBADOS "rising higher' 6#7Stable Aviation Policy Barbados has well established Civil Aviation Act and aviation policy, with two agencies that will play a critical role in the GAIA concession namely: Civil Aviation Department ("CAD"): Regulator responsible for ensuring the safety and efficiency of International Air Transport in Barbados Certifies the airport operator and issues Aerodrome Operator Certificate Enforces ICAO SARPS Provides air navigation services (Barbados Terminal Manoeuvring Area up to FL245, within the Picaro Flight Information Region) Grantley Adams International Airport Inc. ("GAIA Inc"): Granting authority of the concession Will develop performance standards for the contract and monitor concessionaire's performance against them IFC International Finance Corporation WORLD BANK GROUP GAIA Inc. BARBADOS "rising higher' 7#8Key Concession Terms Concession Term 30 years Concessionaire GOB/GAIA Inc. Responsible for the construction and financing of required capital improvements and the operation and maintenance of both airside and landside facilities Responsible for immigration and customs, police, quarantine and access control and screening security Air Navigation Services (Barbados TMA) Technical and Economic regulation Financial Bid Structure Bid Variable: annual concession fee as % of gross revenue from years 1 to 30 Capital Investment International IFC Finance Corporation WORLD BANK GROUP Safety/Security Capex (compliant with SARPS and Barbados) Capacity Capex (compliant with "Optimum" IATA LOS) Various Terminal and Ancillary Facilities improvements GAIA Inc. BARBADOS "rising higher' 8#9Capital Investment ➡ Preliminary capex estimate: US $125 million of which estimated capex for the first 4 years is approximately US $54 million. - Mandatory capex includes: Terminal expansion of boarding areas, including 3 boarding bridges Improvements in security screening flows - - - - New Airport Operations Centre Relocation of Ramp Operations offices New Incinerator facility with co-generation plant ......virgin atlantic Full refurbishment of TWR building and ANS civil works Climate controlled cooling solution for workers at check-in desks Improved space for airport employees International IFC Finance Corporation WORLD BANK GROUP GAIA Inc. BARBADOS "rising higher' 9#10Transaction Process: Request for Qualification (RFQ) >>> Request for Qualification (RFQ) will be made available to all interested parties, indicatively January 6, 2020 which sets out: » - Timetable for the bidding process Prequalification criteria (technical and financial) Rules for interested parties to submit their statement of pre-qualification To be qualified, a bidder must demonstrate: - Technical experience in airport management and construction; and Financial capacity including recent financing experience and adequate net worth IFC International Finance Corporation WORLD BANK GROUP GAIA Inc. BARBADOS "rising higher' 10#11Transaction Process: Request for Proposal (RFP) » Following the RFQ stage, a Request for Proposals (RFP) will be made available to prequalified bidders which sets out: - - Draft PPP Contract Bid process Bid evaluation criteria Preparation and submittal instructions for technical and financial proposals IFC International Finance Corporation WORLD BANK GROUP GAIA Inc. BARBADOS "rising higher' 11#12Bid Evaluation Criteria >>> Technical: Strategic and operational plan: long-term vision for operating all aspects of GAIA Capital plan: implementation of the capital improvements (including terminal building conceptual design) Management plan: staffing, know-how and technology transfer, communications, operational improvements, safety, security, environmental Marketing plan: strategies to grow traffic, and to increase aeronautical and commercial revenues » Financial: ☐ Proposed annual gross revenue sharing percentage with GAIA Inc. A bidder must pass technical evaluation to have its financial bid opened IFC International Finance Corporation WORLD BANK GROUP GAIA Inc. BARBADOS "rising higher' 12#13Opportunities for Local Participation Inclusion of local firms as part of bidding consortia potentially as: - Financial Investors Developers/Construction Firms Retail Concessionaires : - To participate in expansion of commercial activities Space to be expanded for food and beverage, retail shops and services IFC International Finance Corporation WORLD BANK GROUP W GAIA Inc. BARBADOS "rising higher'#14Indicative Transaction Timeline Target Date January 6, 2020 February 17, 2020 February 24, 2020 March 2, 2020 March 20, 2020 Week of March 23, 2020 April 20, 2020 May 4, 2020 May 18, 2020 June 1, 2020 June 29, 2020 August 10, 2020 IFC International Finance Corporation WORLD BANK GROUP Activity Issuance of Request for Qualification (RFQ) and Information Memorandum Receipt of RFQ Applications Announcement of pre-qualified bidders Issuance of bid documents (RFP, draft concession agreement) and opening of data room First round of bidders questions/clarifications Bidders' conference and site visits in Barbados First round of bidders mark up to bid documents Issuance of revised bid documents Second round of bidders mark up to bid documents Issuance of final bid documents Bid Submission Deadline and Bid Opening Commercial Closing/Signing of Concession Agreement GAIA Inc. BARBADOS "rising higher' 14#15IFC Thank You! International Finance Corporation WORLD BANK GROUP GAIA Inc. BARBADOS "rising higher' 15