By: The FINANCIAL
The Asian Development Bank (ADB) and the Papua New Guinea (PNG) National Airports Corporation (NAC) signed a transaction advisory services agreement to develop a new international passenger terminal at Port Moresby (Jacksons) International Airport through public-private partnership (PPP) on 2 February 2017.
“ADB has been a key development partner to NAC for several years through the landmark Civil Aviation Development Investment Program,” said Marcelo Minc, Country Director of ADB’s PNG Resident Mission. “Through this transaction advisory support to NAC for the Jacksons airport, we hope to complement the work we are doing across the PNG aviation sector, develop a regional hub for air traffic in the Pacific, and create a template for delivery of PPP projects in the region.”
The project will use a PPP scheme where the private sector will design, build, finance, operate, and maintain the airport facilities. A new international passenger terminal, the extension of the main runway, and other infrastructure enhancements will help the airport meet forecast air services growth up to 2040. The concession period and other parameters will be determined based on the feasibility study, according to ADB.
ADB’s support is part of its ongoing assistance to PNG to identify and develop PPPs in the transport sector, a key priority in ADB’s 2016-2020 Country Partnership Strategy for PNG. ADB has been supporting the government to improve 21 national airports to provide safer, more secure, and all-weather air transport services through the Civil Aviation Development Investment Program. Jacksons International Airport is part of the program.
The project will be ADB’s first PPP transaction advisory engagement in PNG and the Pacific. As part of the agreement, ADB also aims to create document and contact templates that may be used for future PPPs in the region and to build local expertise in PPP management and execution.