Oman appoints airport operators
01 November 2001
Oman has signed a deal with a consortium led by BAA plc, Britain's largest airport operator, for the privatisation of Seeb and Salalah airports.
The official Oman News Agency (ONA) quoted Omani Transport and Telecommunications Minister Malik Al Muammari as saying the agreement would go into effect from 2002.
Under the 25-year contract, BAA and its partners - local firm Bahwan Trading Company (BTC) of the Suhail Bahwan Group and ABB Equity Ventures - would take a 75 per cent stake in the privatised company. The Oman government would retain 20 per cent and Oman Aviation Services Company five per cent, ONA said.
BAA said recently the new company would invest 130 million pounds ($190.2 million) in developing the airports' facilities, mainly the construction of a new terminal at Seeb, which serves the capital Muscat. Salalah serves the south of Oman. The terminal is due to be completed in mid-2006.
The consortium will float a new company to manage the two airports, with the BTC share being 35 per cent, followed by BAA (25 per cent), Oman Government (20 per cent), ABB Equity Venture (15 per cent) and Oman Aviation Services, parent body of Oman Air (5 per cent).
Al Muammari said that, under the deal, the new firm would pay the government 21.5 per cent of revenues, rising to 40 per cent of revenues at the end of the concession. Oman officials have said the two airports earned some $20 million in 2000 mainly from aeronautical fees.
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