British Group Wins Oman Airport Deal
Britain's largest airports operator, BAA, said Monday it was part of a consortium, which has won preferred bidder status for the privatization of Seeb and Salalah airports in Oman, reported the Gulf Daily News.
BAA said in a statement that when the 25-year contract was finalized, it and its partners, local firm Suhail Bahwan Group and ABB Equity Ventures, would take a 75 per cent stake in the privatized company.
BAA said the new company would invest £130 million ($190.2m) 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 was due to be completed in mid-2006.
Omani Transport and Telecommunications Minister Malik Al Muammari said the shareholder structure of the company will be BAA with 25 percent, Suhail Bahwan Group with 35 percent stake, ABB with 15 percent, the Oman government retaining 20 percent and Oman Aviation Services Company with 5 percent.
BAA, which owns London's busy Heathrow airport, said its equity investment would be around £9m.
Muammari told the Omani News Agency (ONA) that under the deal the new firm would pay the government a percentage of revenues for the duration of the concession.
Oman offered the two airports in December and in March whittled down the list of bidders from nearly 70 to four.
Oman officials have said that the two airports earned some $20m in 2000 mainly from aeronautical fees.
Oman, which depends on oil for most of its income, is trying to diversify its economy away from the hydrocarbons industry through privatization – Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)