/ 6 December 2004

SA group pre-qualified in Indian airports deal

The South African consortium formed by the Airports Company South Africa (Acsa), Old Mutual plc, the BidVest Group and Indian partner GVK Industries Limited has received official notification from the government of India that it has been pre-qualified in the bid to participate in the privatisation of India’s Mumbai and Delhi airports, lead partner Acsa announced on Monday.

Said Acsa managing director Monhla Hlahla: “Acsa is strategically seeking opportunities beyond its South African borders in the developing world, primarily commercial opportunities that enhance trade and economic exchanges for the socio-economic development of Southern Africa.

“India is a major emerging market that is experiencing surging economic growth, which has had a direct impact on its air traffic. Aircraft movements have grown at a compounded annual growth rate of 6,2% over the last five years and this trend is expected to continue.

“Clearly the propensity to travel is high, and with Acsa’s experience in managing an airport slightly larger than both Mumbai and Delhi airports, Acsa is ready to take its rightful place on the global stage.”

Acsa assumes the role of airport operator in the consortium, its particular airport management expertise being twofold. First, Acsa has experience in developing and managing a network of airports in the developing world, which is characterised by a rapidly changing environment.

Acsa also has extensive experience in managing airports ranging in size from the smallest to Johannesburg International airport, which handled 12,5-million passengers in 2003.

The South African High Commissioner in India, Maite Nkoana-Mashabane, has expressed the South African government’s support for Acsa, the South African consortium and the GVK-SA consortium’s participation in the Indian airports privatisation bid.

“The South African government is enthusiastic in respect of a partnership with India, which supports its Countries of the South initiative, and would like to have the privilege of playing a role in contributing to the development of infrastructure, and in particular airports, to the socio-economic benefit of the people of India,” she commented.

“Consequently, Acsa and the South African consortium’s participation in the Indian airports privatisation bid has the full support of the South African government.”

Acsa believes it is part of a world-class consortium that collectively reflects the synergies and similarities that exist between India and South Africa, which positions it to partner with the government of India in developing airport infrastructure assets that are fundamental to the continued economic growth of India.

“Over a period of 10 years, Acsa has developed an array of products and gained invaluable expertise in airport management, a competence that now serves Acsa’s growth strategy and its vision of championing aviation in Africa and the developing world.

“As the preferred bidder for the concession to develop, operate and manage the Maputo International airport, Acsa is in the final stages of concluding the legal documentation which will grant Acsa the concession,” concluded Hlahla. — I-Net Bridge