Indonesia to tender US$200 million airport PPP this month
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.
The Airport Director of Indonesia's Ministry of Transportation has publicly stated that the Ministry intends to launch a tender for the expansion and operation of Komodo Airport, located in Labuan Bajo, East Nusa Tenggara province, this month. The project is thought to require a total investment of IDR3 trillion (~US$200 million).
At a market sounding event last week, the Director disclosed that the expansion is envisaged as increasing the airport's capacity fourfold, from the current one million to four million passengers per year by 2044. The airport will also begin serving international destinations, such as Singapore, Kuala Lumpur (Malaysisa), Darwin and Perth (both Australia).
The Ministry intends to select a preferred bidder in November and sign the contract for the PPP project in December. The selected private party will be expected to achieve financial close in the first half of 2019, and then begin construction works and take over operations of the airport in the second half.
Construction will include extending the airport runway to 2,450m (currently 2,250m) to accommodate medium-haul Boeing 737-800 aircrafts, and expanding the apron to 11,100m2. The domestic terminal will be expanded and a new international terminal constructed. The private partner will also develop the parking areas and supporting facilities.
The cost of these works is thought to be IDR1.17 trillion (US$78.4 million). The Ministry intends for them to be completed by 2020. Operational expenditure is projected to cost IDR1.83 trillion (US$122.6 million).
The selected private partner will make return on investment from airport service user tariffs over a 25-year concession period or until 2044.
The development of the airport is intended to support the increase in tourism in the region. Labuan Bajo has been selected by the government as one of ten flagship destinations to be promoted as New Bali.
Country news
-
-
August 14, 2018
Shortlist for Indonesian highway PPP
Indonesia's Directorate General of Highway (Direktorat Jenderal Bina Marga) under the Ministry of Public Works and Housing has prequalified six potential bidders for the development of the Jalan Lintas Timur highway PPP in South Sumatra.
Read more -
July 31, 2018
Indonesia to launch satellite through PPP
The Ministry of Communication and Informatics of the Government of Indonesia has launched a tender for the financing, design, procurement, construction, launch, operation and maintenance of a multifunctional government satellite. The total estimated investment of the project is IDR6.58 trillion (US$456.7 million).
Read more -
November 27, 2017
ADB supports Indonesia transport PPPs
The Asian Development Bank (ADB) and the Government of Indonesia today have signed a memorandum of understanding to partner up in promoting public-private partnerships in the transport sector. ADB will provide strategic advisory services to support the Ministry of Transportation (MOT) in screening and preparing transport projects for delivery through PPP.
Read more -
September 22, 2017
DP World to exit Indonesian port concession in 2019
DP World Limited has announced that the company has reached a decision not to renew its operating contract for PT Terminal Petikemas Surabaya (TPS) in Indonesia at the end of the agreement in 2019.
Read more -
February 01, 2017
Indonesia to tender 3 water PPP projects
The Government of Indonesia is to launch a tender process for three public-private partnership (PPP) drinking water projects in Bandar Lampung (Lampung), Jatiluhur (West Java) and in Karian (Banten).
Read more
