This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.
Fukuoka Airport HD Group has signed a Basic Agreement with the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) of the Japanese government to operate Fukuoka Airport, the principal airport on the island of Kyushu, in the south of Japan, under a concession contract.
The group comprises Fukuoka Airport Holdings Co., Nishi-Nippon Railroad, Mitsubishi Corporation, Changi Airports International and Kyushu Electric Power.
As well as the airport itself, the consortium will operate the associated air navigation facility, building and parking facilities and provide environmental protection measures. The total investment required by the concessionaire is estimated to be JPY180 billion (US$1.64 billion).
Fukuoka Airport is the fourth busiest passenger airport in Japan and, as of 2017, the fourth busiest single-runway airport in the world by passenger traffic.
Currently, the basic airport facilities, facilities for handling passengers and cargo and car parking facilities are operated by separate entities. MLIT believes that integrating the operation of these different facilities by one private partner will enhance the strategy and efficiency of the airport's operations and aid regional promotion and development.
As the operator, the consortium will facilitate the revitalization of the airport and its surrounding areas. The aim of the concession is to facilitate the transformation of Fukuoka into a key transport hub in the region, with the long-term aim of stimulating Kyushu’s economy through trade and business activities, through leveraging the airport’s city centre location as well as its geographical proximity to East and Southeast Asia.
The Basic Agreement prescribes that the consortium commence operation of Fukuoka Airport on 1 April 2019. The length of the concession contract is 30 years, with a 5-year extension option to cover force majeure risks.
The consortium was selected as the preferred bidder for the concession last month. As reported on this platform, applications to operate the airport were invited in May last year, with five consortia shortlisted in August.
MLIT's beliefs on the operation of Fukuoka extend to other airports in Japan - in 2011 the Ministry announced that it would privatise all national airports by 2020. With only a few concessions awarded by the start of this year, in May MLIT announced the tender of a package of airport concessions - seven airports located on Hokkaido island, in the north - which included the third busiest airport in the country.
The Ministry of Land, Infrastructure, Transport and Tourism (MLITT) of the Government of Japan has launched a tender for the operation of seven airports under a 30-year concession contract, setting the minimum bid price at JPY72 billion (US$656.9 million).
Read moreThe consortium made up of VINCI Airports, ORIX and Kansai Airports signed with Kobe City the 42-years concession contract for the operation of Kobe airport (Japan).
Read moreThe city of Kobe has named as preferred bidder for the 42-year Kobe airport concession contract the joint venture formed by VINCI Airports, ORIX Corporation and Kansai Airports.
Read moreA consortium led by Mitsubishi Estate has signed the concession agreement to operate the Takamatsu Airport in Japan.
Read moreAMP Capital has reached final close on the AMP Capital Infrastructure Debt Fund III (IDF III), raising US$2.5 billion for the mezzanine debt strategy, an additional US$800 million in co-investment rights and securing a further US$800 million from investors who want access to its deal capabilities.
Read more