The Government of Jamaica, acting through the Ministry of Transport and Mining is seeking to identify a private operator for the Norman Manley International Airport (NMIA) to complete the planned modernization and expansion of the facilities and to improve the efficiency of operations under a concession contract.
The Government of Jamaica wishes to select a private operator through a competitive bidding process. The Government of Jamaica is supportive of Private Sector Participation in the delivery, management, and operation of airport infrastructure and its long-term vision is to establish an air transport system that facilitates Jamaica as a strategic logistics hub.
The Government of Jamaica understands the value that the private sector can contribute to improving operations and efficiency, and it has developed a number of key strategic policies to facilitate increased private-sector led growth, through the implementation of catalytic, strategic Private Sector Participation projects.
The Government of Jamaica has entered into many Public Private Partnership (PPP) arrangements in a variety of sectors over the past 25 years and has a good track record of Private Sector Participation in aviation based on the successful concessioning of Sangster International Airport in 2003.
In November 2012 the Government of Jamaica approved the Policy and Institutional Framework for the Implementation of a Public - Private Partnership Programme for the Government of Jamaica which outlines the framework to identify, develop and implement PPP projects in Jamaica. The Government of Jamaica’s PPP Policy is guided by the principles of transparency, probity and equity and establishes a centralized institutional structure for the development of the PPP for NMIA.
NMIA is currently operated under a 30-year concession agreement signed in 2003 between Norman Manley International Airport Airports Limited (NMIAAL) and Airports Authority of Jamaica (AAJ). Around the same time, AAJ also initiated a 20-year Master Plan which was updated in 2013 in preparation for the current Transaction. To date, AAJ has invested approximately USD $150 million in the expansion of NMIA, including construction of a new departure terminal, a cargo terminal, and airside improvements. The concession agreement signed between AAJ and NMIAAL was intended to be on an interim basis pending the procurement of a qualified private investor/operator. As such, the private operator to be identified through this Private Sector Participation transaction will complete the modernization of NMIA envisaged by the Government of Jamaica and improve its efficiency under a long- term agreement. The existing concession will be terminated and replaced by a new concession agreement between AAJ and the Concessionaire.
The Government of Jamaica intends to select the Concessionaire for the Project through an open, transparent and competitive international public tender. The Government of Jamaica key specific objectives include:
- Enhancing the competitive positioning of NMIA
- Increasing service quality standards and improving operational efficiencies in line with international best practices
- Leveraging private sector investment to improve facilities and operations.
- Monetizing the asset at an optimal value
Overview of the Airport
The Airport is owned by GoJ and operated by NMIAAL, which was incorporated in 2003 as a wholly owned subsidiary of the AAJ. The company’s principal activity is to administer, control, and manage the Norman Manley International Airport and to provide and maintain such services and facilities other than navigational services. In addition to NMIA, AAJ also owns, manages and directly operates four general aviation aerodromes in Jamaica. AAJ also owns the SIA, managed under a PPP.