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                                                                                                               25 January 2021
                                                                                                                      No. 1137

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AIRPORT DEVELOPMENT International News
Each issue of Airport Development focuses on a different region of the world, with global news at the end of this section. A list of
past focus regions published in recent years can be downloaded from the Bonus section in the subscriber pages of our website.

Focus Region: Asia Pacific                                                                      Other Regions from page 10

PHILIPPINES
The USD 2.27-billion project to rehabilitate Manilla’s Ninoy Aquino International Airport
(NAIA) faces further delays, after the Manila International Airport Authority (MIAA) revoked the
original proponent status (OPS) granted to Megawide Construction Corp. and GMR. Megawide said it
would file a motion for reconsideration, maintaining that it has complied with all the requirements set by
the government. Megawide-GMR was the consortium behind the Mactan-Cebu International Airport
modernization, which has won multiple international awards. In September 2020, the two companies
delivered the Clark International Airport complex to the Department of Transportation (DOTr) under
budget and on time.
Before the pandemic, NAIA was struggling with over 45 million passengers annually—above
its existing design capacity of 31 million passengers per year. This led to frequent flight delays
and cramped passenger waiting areas. The government granted Megawide-GMR. the OPS for the
renovation of NAIA Terminal 1 in July 2020, after the consortium submitted an unsolicited USD 2.27
billion proposal for the modernization of the country’s primary international airport. Being granted the
OPS means that Megawide-GMR could negotiate with the government as the private sector partner for
the NAIA rehabilitation project. Prior to Megawide’-GMR’s proposal, a “super consortium” was given the
OPS for the NAIA rehabilitation project. The consortium included Aboitiz InfraCapital Inc., the Ayalas’ AC
Infrastructure Holdings Corp., Andrew Tan-led Alliance Global Group Inc., Lucio Tan-led Asia’s Emerging
Dragon Corp., Gotianun-led Filinvest Development Corp., Gokongwei-led JG Summit Holdings Inc., and
Metro Pacific Investments Corp. However, this consortium withdrew from the project. Megawide has said
they responded accordingly to the national government’s insistence on contract terms that were stricter
than that of the previous proponent. “In response to that call, Megawide submitted an innovative
proposal that sought not just to rehabilitate NAIA but transform it into a first-world, global airport
complex,” it pointed out. Megawide’s offer also includes a passenger railway link to connect Naia’s
terminals within the sprawling 650-hectare complex. This is different from NAIA Consortium’s offer to link
the terminals through a dedicated bus system. #1137.1

The USD 15-billion New Manilla International Airport (NMIA) in Bulacan is set to open in
2025. This was announced by San Miguel Corp. president and COO Ramon Ang. In a statement, the SMC
chief said work has started for the construction of the NMIA in Bulakan, Bulacan. With this, Ang set the
opening date of the massive airport project for 2025. In December last year, SMC awarded Dutch
dredging firm Boskalis a USD 1.73-billion contract to restore land at the project site in Bulakan town. In
August 2019, the Department of Transportation (DOTr) formally awarded the contract to build and
operate the Bulacan airport project to San Miguel Holdings Corp., the infrastructure unit of SMC. Both
parties signed the concession deal for the New Manila International Airport on September 18, a month
and four days after SMC received the notice of award for the contract.

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The project involves the construction, operation, and maintenance of a 2,500-hectare airport in Bulakan.
MIA is designed to accommodate up to 100 million passengers per year as SMC plans to equip
the airport with four runways, eight taxiways, and three passenger terminals. Depending on the market
forces, two additional runways may also be eyed to be established to handle up to 200 million, the
conglomerate earlier said. It will be connected to the North Luzon Expressway through an 8.4-kilometer
tollway to be constructed as part of the project. #1137.2

The new passenger terminal building of the Clark International Airport (CRK) has been
completed and was set to start operations in January 2021, the Department of Transportation (DOTr)
has said. In a statement, the DOTr said the airport expansion project has been “completed by end-
September, ahead of its original October target completion date.” “Once operational, it is projected that
CRK’s current operational capacity will get a boost, and the airport’s passenger volume will be tripled
from the current 4.2 million to 12.2 million annually,” the agency said. The expansion will also elevate
Clark airport’s stature as “Asia’s Next Premier Gateway” and is expected to significantly help in
decongesting the passenger traffic at Ninoy Aquino International Airport, it added. The project was
undertaken by the Megawide GMR. Construction Joint Venture, Inc. (MGCJV), and was monitored by the
DOTr and the Bases Conversion and Development Authority (BCDA). #1137.3

The massive Sangley Point International Airport (SPIA) project is still being vetted by the
government. The developer, MacroAsia Corp. must prove to the Cavite Provincial government that it
still has the financial muscle to fund the first phase of the airport before it can proceed with the
development together with its Chinese partner. The first phase of the SPIA project was awarded by the
provincial government of Cavite in February 2020, to the team of MacroAsia and state-owned China
Communications Construction Co. Ltd. (CCCC). MacroAsia has a 40 percent stake in the consortium, while
CCCC holds the remaining 60 percent. In December 2019, the consortium submitted in the sole bid for
the project, which will be implemented as a local government public-private partnership joint venture by
the provincial government of Cavite. The ground-breaking for the first phase of the airport project was
initially expected to take place in the second quarter of the year.
The first phase of the project, which will cost USD 4 billion, includes the construction of the
Sangley connector road and a bridge to connect the Kawit segment of the Manila-Cavite Expressway to
the airport. Phase 1 also involves the construction of the airport’s first runway. The airport will have a
capacity of 25 million passengers annually and is intended to help decongest the Ninoy Aquino
International Airport. It is expected to be fully operational by 2023, with partial operations to start a year
earlier. The fourth runway will be opened after six years. The same consortium will work on the other
two phases of the airport project, but there may be contract renegotiations, according to the Cavite
government. The second phase, which will cost about USD 6 billion, involves the construction of two
more runways, giving the airport an annual capacity of 75 million passengers. The last phase is the
expansion to four runways, bringing capacity to 130 million passengers. #1137.4

The Mactan-Cebu Airport is bent on pursuing the construction of the parallel runway in
anticipation of future growth. The Mactan-Cebu International Airport Authority (MCIAA) expects
recovery of the air travel industry amid the plunge of passenger traffic in 2020 by plotting a long-term
development plan. MCIAA general manager and chief executive officer Steve Dicdican said the second
runway will be dedicated for take-offs while the existing one will be for landings. “We will continue with
our projects. We’re slowly catching up to with the construction of the second runway. We hope to finish it
before the end of this administration, probably early 2022,” Dicdican said, adding the need for continued
capital spending to boost future growth despite the plummeting income currently. He believes tourism
can bounce back once travel restrictions are eased and anxieties of travelers are gone. “We anticipate

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future growth. We need to ensure we are sustainable,” Dicdican said. “We (the airport) will grow as the
market grows. Our airport has a modular design so we can always expand. We are built for growth”.
Although they are seeing passenger traffic plunging to three million in 2020, a level that was last seen
more than 10 years ago amid the dismal air travel demand due to the coronavirus diseases (Covid-19)
scare, he added the MCIAA is plotting a long-term goal as it slowly recovers from the impact of the crisis.
Dicdican said it will take about two years for the airport to regain its pre-Covid passenger traffic. In 2019,
the country’s second biggest air gateway recorded 12.6 million passenger traffic. #1137.5

A feasibility study for the proposed airport in Medellin town in northern Cebu is underway.
The announcement was made by the Municipality of Medellin in the fall of 2020, after a meeting with
representatives of the Mactan Cebu International Airport Authority (MCIAA). Medellin is a city located 90
kilometres north of Cebu City. Medellin city officials and their counterparts from MCIAA also conducted an
ocular inspection of the site in Barangay Camputatan Sur where the proposed Medellin airport will be
built. They said that at least 32 hectares of land will be needed for the project that will include a runway
and other infrastructure that are needed to accommodate turboprop aircrafts. “The airport will require at
least 32 hectares for the runway and other needed infrastructure to accommodate turboprop aircraft,”
the town’s statement reads. The town’s advisory said that MCIAA is expected to conduct a feasibility
study and provide technical assistance to the local government unit (LGU) for the realization of the
project. “MCIAA will conduct a feasibility study and provide technical assistance to the LGU regarding
zoning and building regulations. The team will meet monthly for updates,” it reads. The local government
of Medellin has been pushing to have its own airport and is targeting for the protect construction to start
in 2021. #1137.6

The Department of Transportation (DOTr) will establish two new airports in Mindanao.
Mindanao Development Authority (MinDA) Assistant Secretary Romeo Montenegro said that the
construction of the New Zamboanga International Airport in Zamboanga City and Central Mindanao
Airport Development Project in Barangay Tawantawan, M’lang Municipality, Cotabato province would cost
the government USD 289,76 million and USD 3,12 million, respectively. He said that around USD 4,16
million has already been transferred to the local government of Zamboanga City for the acquisition of the
airport site in Barangay Mercedes, but actual construction has yet to commence. Zamboanga City has an
existing international airport located in Moret Field in Barangay Canelar. MinDA Secretary Emmanuel
“Manny” Piñol said that the New Zamboanga International Airport was a commitment project of the
Philippines to the Brunei, Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-
EAGA). BIMP-EAGA is a 25-year old sub-regional economic cooperation initiative in Southeast Asia
designed to spur economic development in the lagging sub-economies.
The new airport project, which will feature a new terminal with six boarding bridges, and a
modern control tower, will have a 3,440-meter (11,286 foot) runway to accommodate heavier
aircraft, according to Piñol. Construction will start in 2021, he said. For the Central Mindanao Airport
Development Project, Montenegro said the government already commenced the construction of the
perimeter and frangible fence last June while the constructions of the taxiway and apron expansion,
which cost USD 1,91 million, were already 26.6-percent completed. Piñol said the project, which was
identified as a priority project to promote inclusive and balanced rural development in Mindanao, would
complement the operation of General Santos City International Airport and Awang Airport in Barangay
Awang Municipality, Datu Odin Sinsuat, Maguindanao, boosting “economic activities of the area where
many agricultural products, including highly perishable fruits come from.” He said the Central Mindanao
Airport would be operational before President Duterte’s term ends in 2022. The Central Mindanao Airport
will serve the provinces of North Cotabato, Maguindanao, Sultan Kudarat, Davao del Sur and the
southern towns of Lanao del Sur and Bukidnon, he added.

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The upgraded Bantayan Island Airport has been reopened. The ceremonial opening marked the
completion of extending its 900-meter (2,950-foot) runway to 1,200 meters (3,937 feet), and its own
terminal to accommodate commercial flights. The event also welcomed three maiden flights by different
airline companies, which departed from the Mactan Cebu International Airport (MCIA). The opening of
the upgraded Bantayan Island Airport meant that traveling to the island would be reduced from the usual
five hours by bus and ferry to approximately 30 minutes by air. In September 2019, the MCIAA and the
Cebu provincial government had signed a memorandum of agreement to develop the airport into a
commercial air hub. The Bantayan Airport, which sits in a 29-hectare province-owned property in Sta. Fe
town was classified as a community airport, catering to only chartered flights. It now meets the standards
of the Civil Aviation Authority of the Philippines (CAAP). #1137.7

A project to modernize Davao International Airport was recently approved by the
government. The National Economic and Development Authority-Investment Coordination Committee
(NEDA-ICC) recently approved the unsolicited proposal by Chelsea Logistics Holdings Corporation for the
USD 1.02 billion modernization. The first phase of the operate-add-transfer project, which was slated to
start in 2020, will boost the airport’s passenger traffic by 15.1 million passengers per annum. It will be
completed by 2028, with a concession period of 30 years.
The modernized Davao International Airport, the primary gateway to Mindanao and the third largest
airport in the country after the Mactan International Airport and the Ninoy Aquino International Airport,
will bring in more trade and tourism and speed up the economic growth of the region, stressed
Department of Transportation (DOTr) Secretary Arthur Tugade. The unsolicited proposal covers the
reconfiguration and expansion of the terminal building, construction of parallel taxiway, improvement of
airside and landside facilities, installation of modern airport IT systems, and all activities needed to
improve airport services. “This is a very positive development as far as fast-tracking our infrastructure
backlogs is concerned,” Secretary Vince Dizon, Presidential Adviser for Flagship Programs and Projects,
noted. “This will also speed-up the realization of the transportation roadmap which the DOTr envisioned.”
#1137.8

MICRONESIA
The cost of the expansion project at Won Pat Guam International Airport has doubled in cost
and faces new delays. Construction of the airport's third-floor corridor for arriving international
passengers has nearly doubled in cost, from the original estimate of USD 70 million to now USD 137
million, and is facing another set of delays. The revised July 2020 completion date is already 10 months
behind the original target of September 2019 and is now delayed even further. A major part of the
problem with the project, according to airport management, is that the original architectural drawings for
the building do not match what's actually built. In addition, the original USD 70 million estimate for the
project may have been "underestimated," the airport management has said.
The federal mandated project provides for a more secure separation of arriving and departing passengers
at the international airport. The airport has, for several years, had to take alternate measures to separate
inbound and outbound passengers, such as using temporary partitions with Airport Police Division officers
guarding them to make sure passenger flows don't mix. The project is funded by a 2013 debt through
the bond market and Federal Aviation Administration grants. The bond funds were supposed to cover not
only the corridor project but also to pay the cost of a parking garage and commuter terminal. The last
two projects had to be scrapped because of the third-floor project's cost overruns.
The construction for a new international corridor at the airport has also prompted a need for more
security lanes for the Transportation Security Administration. According to Ada, the new screening lanes
have been completed and are just awaiting the installation of TSA screening equipment. #1137.9

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SOLOMON ISLANDS
The multi-million dollar Japanese funded Honiara airport upgrade is now in limbo and is
currently suspended following the Coronavirus (Covid-19). This project aims to reduce aircraft
turn around, provide passenger comfort and improve safety by construction of a new departure terminal,
a new taxiway, repairs to existing taxiway, repairs to existing apron and expansion of apron to the west,
refurbishment of existing international terminal two-thirds to be used for domestic operations, installation
of dykes for flood control, install new generators and install lights. These are major components of the
scope of the project at a cost of approximately USD 33.8 million. Japan is funding the airport upgrade
and its foreign aid agency the Japan International Cooperation Agency approved the contract.
If the threat continues for a longer period of time, the project could be terminated. According
to the project’s timeline, it is expected to be completed by June 2022. The project is scheduled for
completion ahead of Solomon Islands hosting of the South Pacific Games in Honiara in 2023. The Honiara
airport has been experiencing increased flights, visitor arrivals and tonnage of overseas cargo, but such
increase has come with a cost due to congestion and poses safety risks to airport users and aircraft due
to limited capacity of airport facilities at our busiest international airport. It was reported that the
Solomon Islands' government hoped the infrastructure upgrade would be a catalyst for tourism
development and would allow the Honiara International Airport to become a competitive regional airport.
#1137.10

PAPUA NEW GUINEA
Kavieng airport in New Ireland province will soon get an upgrade of USD 26,15 million by
the China Railway Construction Engineering Group. The National Airports Corporation has signed a
contract for the Kavieng airport upgrade with the State and China Railway Construction Engineering
Group. The upgrade will include aircraft pavement and strengthening, runway extension, a new state-of-
the-art terminal building, airfield ground lighting and associated works. This is part of the ongoing
government’s effort in maintaining and rehabilitating 22 national airports in PNG. NAC acting managing
director, Ephraim Wesam said the Kavieng airport upgrading has undergone a bidding process in 2019
where qualified contractors bid for the project. Mr. Wesam said since 2009, the National Airports
Corporation, through the government of PNG has been receiving assistance from ADB’s multi-tranche
financing facility (MFF) to redevelop its deteriorating civil aviation infrastructure in Papua New Guinea. He
said the bid was done in accordance with procurement guidelines following a bid evaluation report that
was submitted to ADB. “The contract was awarded to the lowest responsive bidder China Railway
Construction Engineering Group Company (CRCEG). A project implementation unit will oversee works on
the ground to ensure the implementation of the project progress and its completion on time. #1137.11

FIJI ISLANDS
Fiji Airports’ USD 3 billion investment for the upgrade and expansion of Nadi International
Airport, which is part of the Master Planning, will see a significant transformation at Fiji’s
gateway to the world in the coming years. The major upgrades include a new runway, parallel to
the current cross-runway and running alongside where the current private airlines bases area. Other
projects are the extension and increase of the international terminal, thereby doubling its size and the
number of gates, a new general and aviation cargo area, multiple new taxiways, new walkways
connecting the terminal to the boarding bridges, extended arrivals baggage hall, smarter technologies for
efficient processing, more retail spaces and space for amenities, new administration building, new fire
station and a new Control Tower. It is currently not known how the project timeline will be impacted by
the COVID-19 pandemic. #1137.12

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AUSTRALIA
Melbourne’s long-awaited airport-to-city rail link route has been unveiled, with a promise to
get travellers to their destination in less than 30 minutes. Prime Minister Scott Morrison and Premier
Daniel Andrews announced the route in November 2020, committing billions in funding for the historic
project, which will connect Victoria’s regional and metropolitan rail networks. The reality of an airport-to-
city rail journey has been much-anticipated by Victorians, who unlike Australians in other states, have not
been able to catch a train to their airport but instead had to rely on an expensive Skybus service or taxis.
Construction is expected to kick off in 2022 and be completed by 2029. Melbourne Airport Rail will see
10-minute turn-up-and-go services running from Melbourne Airport through the city, with direct
connections to sites including Melbourne University, the Parkville medical precinct, Melbourne Central and
Flinders Street stations, and the St Kilda Road business precinct. #1137.13

A report used for the draft master plan of a new sustainable city surrounding the Western
Sydney Airport has warned of the increased risk of bird strikes because of 'green' initiatives
planned across the region. There are tens of thousands of bird-strikes with planes every year around
the world. The plans included a proposal to increase tree canopy around the airport by 40 per cent. The
Department of Planning wouldn't comment on which green initiatives would be scaled back. Designs are
underway for the construction of the Western Sydney Aerotropolis at Badgerys Creek, which is set to
grow to a city roughly the size of Adelaide in the coming years.
But a Wildlife Management Assessment report, commissioned by the NSW Government for its draft
master plan said some elements of the design were "at odds" with protecting aircraft from bird strikes.
"Safeguarding the 24/7 operations of the airport and the vision of the Western Sydney Aerotropolis are
essentially at odds," it stated.
"If left unmanaged, this may result in an unacceptable number and type of birds moving through aircraft
airspace, compromising aircraft safety." Such strikes have accounted for the loss of more than 600
aircraft and 532 lives internationally, according to data compiled by the report author Avisure, an aviation
risk consultancy. Tens of thousands of incidents are reported around the world every year — like the bird
strike blamed for bringing down US Airways Flight 1549, which landed in New York's Hudson River in
2009. #1137.14

Brisbane’s Master Plan approval will see USD 3 billion investment in airport infrastructure
over the next decade. The Master Plan was approved by the deputy prime minister in the spring of
2020. BAC CEO Gert-Jan de Graaff said the master plan was arguably the most important document the
Corporation produces. “While it is a regulatory requirement, these comprehensive five yearly documents
form an essential part of our medium and long-term planning at Brisbane Airport (BNE) to ensure the
continued delivery of the highest quality of secure and efficient aviation and business services.” Providing
a 20-year blueprint for development, the master plan outlines the land use planning and development
intent for BNE, ensuring essential aviation infrastructure is continually delivered in advance of the
increased demand. “Airport infrastructure requires long term planning with construction periods often
much longer than other large-scale infrastructure projects, and despite the current challenge of COVID-
19 on the global industry, the common theme of the Brisbane Airport 2020 master plan is one of planning
for growth. Growth in demand for both more frequent flights and for new destinations, growth in the
businesses that call the airport their home and growth in the important freight and cargo services, both
imports and exports that connect businesses across Queensland to Australia and the world. “The approval
of the 2020 Master Plan will see approximately USD 3 billion investment in airport infrastructure over the
next decade, allowing Brisbane Airport to cater to the expected doubling of passenger numbers to around
51.5 million by 2040,” he said. While the master plan is the blueprint for development to meet future

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demand, it also forms the platform for BAC’s ongoing contribution to the local, state and national
economy over coming decades. An economic study conducted for the master plan found that Brisbane
Airport would contribute an estimated USD 6.72 billion to the Australian economy and provide around
46,000 full time jobs at BNE by 2040/41.The Brisbane Airport 2020 master plan has been the subject of
extensive consultation with all levels of government, industry and the community. #1137.15

After 15 years of planning and construction Brisbane Airport has opened its new runway
01L/19R. The 3,300-meter (10,826-feet runway) has cost over USD 900 million and was the largest
aviation project in Australia during its construction. The runway can handle the largest commercial
aircraft and is connected to the rest of the airport infrastructure by 12 kilometres of taxiways. Its distance
from the longer 01R/19L runway will allow independent operations on the two runways.
The project was particularly challenging due to the soft nature of the land on which the runway was built.
in 2019, a 2.3% increase over the previous year, cementing its role as the third most important airport in
Australia behind Sydney Kingsford Smith Airport and Melbourne International Airport. #1137.16

Adelaide Airport’s new international departures hall and retail concourse has opened to
travellers, in the latest step in its USD 127 million expanded terminal development. The launch of the
new facilities is Adelaide Airport’s first major expansion since the current terminal was opened in 2005. In
particular, the new international departures hall is three times the size of the previous facility. The next
step of the project, which is due to be complete by the end of next year, includes a new international
arrivals hall, international lounge, and more retail space. The entire project will expand the terminal’s
retail footprint to 7,257 square metres (78,114 square feet), while overall terminal expansion will be
16,500 square metres (177,605 square feet).
Passenger numbers have increased by close to 50 per cent since the existing terminal was opened.
International passengers alone have tripled over the same 15-year period.
Virgin Australia will open an expanded lounge as part of the development. The first VIP facilities for
international arrival and departures will also be included. International upgrades will include a second,
longer baggage belt for arrivals, more space for emigration and immigration processing, expanded
security screening, a larger duty-free precinct for arrivals and departures, and expanded dining and retail
options. #1137.17

Cairns Airport has completed a USD 42,42-million upgrade to the T2 domestic terminal. Three
years in the making, the development was carefully designed to not only improve traveler navigation,
reduce congestion and offer a wider array of retail and dining outlets, but immediately immerse travelers
in the essence of our remarkable surrounds. Mr. Carter believes the new upgrade will future proof the
airport for many years to come. “With domestic passenger numbers expected to grow by 40 per cent
over the next ten years, it was important that we looked at a configuration that both accommodated the
increased passenger traffic and put the customer experience first,” Cairns Airport CEO Norris Carter said.
Among the terminal’s new eateries are familiar local favourites like Ochre, The Pier Bar and Rattle n Hum,
which all showcase local produce and beverages. The T2 Domestic upgrade also includes a number of
sustainability measures, including carpet made from recycled fishing nets, carbon-neutral tiles and more
natural lighting.
Cairns Airport is the seventh busiest by passenger movements in Australia, and the second busiest
regional centre behind the Gold Coast Airport. #1137.18

After sixteen years of service and more than a million take-offs and landings, the main
runway at Cairns Airport has undergone a complete resurfacing. The upgrade included removing
11,000 tonnes of asphalt, replacing it with a high strength pavement, and repurposing the old material

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across the airport’s internal levee roads. Head of Infrastructure at Cairns Airport Alan Dugan said the
project had gone like clockwork, completed each night in work windows to ensure the airport remained
open and accessible. “Maintaining safe operations at the airport over this time was critical to the
completion of the project and it’s a testament to the tremendous partnerships we have with our airline
partners and our contractors,” he said. As a contribution to the local community, new runway grade
asphalt from the on-site plant was also used to resurface the Cairns BMX Club access road. #1137.19

The federal government has approved the Canberra Airport 2020 Master Plan, which is set to
create thousands of jobs and billions of dollars in economic activity over the coming decades. The Master
Plan, which was approved just before the COVID crisis hit, sets out a 20-year strategic vision for the
airport to ensure appropriate development and cater for future growth, with passenger numbers set to
rise to more than nine passengers people by 2039. Approval of Canberra Airport’s 2020 Master Plan
follows a comprehensive statutory referral and consultation process that attracted support from all major
stakeholders. The airport authorities aim to add more international flights to different locations such as
China and New Zealand, construct a new runway and increase the airport’s cargo capacity. The 2020
Master Plan will in force for eight years or until a new one is approved. #1137.20

Hobart Airport’s $50 million new highway interchange faces a potential delay after local
landowners threatened legal action to adapt the plans. Greg Casimaty, who heads a consortium
planning a multimillion-dollar development in the vicinity, said his project would be effectively locked out
because there isn’t a two-way access road. “We, like all Tasmanians, just want a fair go,” said Casimaty.
“We had a proposal to do just that, but which has now been stonewalled by this government. We can
only hope this incredibly obstinate attitude will change.” Tasmania’s Department of State Growth rejected
the complaint and said it had already “engaged extensively” with landowners “over a considerable period
of time”. #1137.21

Infrastructure upgrade works for the Townsville Airport redevelopment are underway. The
works are an important step in the transformation of the terminal, involving the terminal roof upgrade, as
well as water, fire, and sewer upgrades – which are required to address current capacity constraints and
accommodate future growth. Builder Lendlease is progressing with the roof works, while Townsville-
based CES Civil has just been awarded the contract for water, fire, and sewer upgrades, which will
commence next month. Townsville Airport Chief Operating Officer Kevin Gill said the upgrades were
critical enabling works for the terminal redevelopment. “We are pleased about moving forward with the
core infrastructure works, as an important step in the overall redevelopment,” he said. Townsville Airport
reached financial close on a USD 38,6 million loan from the Northern Australia Infrastructure Fund (NAIF)
in December 2019. The water, fire and sewerage works include construction of a new sewer rising main,
upgrades to existing pumps, new water mains, installation of an internal fire supply main and new fire
tanks. Infrastructure upgrade works are expected to be completed by the end of the year. In addition to
these works, a road project is underway which will streamline the entryway to the airport precinct by
extending Meenan Street to meet John Melton Black Drive, creating a new direct, more appropriate and
attractive entryway to the precinct for residents and visitors. All together the roof, core infrastructure and
road works represent a USD 7 million investment. #1137.22

NEW ZEALAND
Auckland Airport has put most of a USD 860-million work project on ice, but some projects
have gone ahead. Auckland Airport had projected passenger numbers to double by 2044, but now
faces a devastating blow to its business from the Covid-19 pandemic. Airport development manager
André Lovatt says most of the rest of the USD 860 million package of improvements planned at the

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airport has been slashed down to essential safety and asset maintenance for the near future. "It's
extremely disappointing ... but with no certainty around when the aviation market will recover it just isn't
realistic to keep progressing these projects at this point in time. "We've experienced a significant
reduction in flights and passenger numbers, with aircraft movements currently 90 to 95 per cent lower
than a normal busy day."
A USD 18,66-million runway maintenance job was brough forward. The operator says construction would
last eight to 10 weeks. Using a displaced threshold method, the existing runway will be shortened by
1,100 meters (3,608 feet) but aircraft continue to operate while work is carried out safely. Under normal
circumstances, there could be a need for airlines to reduce aircraft weight, but the operator says it does
not anticipate this with fewer fully laden aircraft flying. This project is “a critical component of Auckland
Airport’s much reduced infrastructure development programme over the next couple of years, one which
prioritises selected capital projects that are focused on essential safety and asset maintenance”.
#1137.23

Wellington Airport has put its terminal expansion plans on hold indefinitely because of the
coronavirus pandemic but insists the project will still happen. The airport revealed its expansion plans
late last year, hoping to get the project under way within five years and spend USD 574 million over the
next eight years. But a lack of passengers because of the pandemic, and a corresponding loss of
revenue, has forced the airport to put part of the USD 717,67-million plan on hold. It said the extension
of the main terminal, which it planned to redesign to cater for both international and domestic flights,
would be put on ice indefinitely while the pandemic played out. “Passenger growth and terminal build
now depend on how long Covid-19 border restrictions remain, and how quickly passenger numbers return
post-Covid,” an airport spokesperson said.
The 20-year redevelopment is premised on passenger numbers doubling to 12 million by
2040. It includes extending the main terminal building to the south, using the old Miramar South School
site, and converting half of the Miramar golf course for additional aircraft parking and taxiing. The
terminal extension would allow the northern terminal to be used for regional flights - instead of
international flights - and the main terminal to be used for international and domestic flights.
The plan also involves a range of other upgrades, including runway and taxiway improvements, new
freight facilities, an expanded cargo hub, and a new fire station. While those were still on schedule, the
terminal “flip” and building extension were likely to be delayed. The controversial runway extension also
remains on hold, with no timeframe on when a new resource consent application will be lodged. An initial
application was withdrawn in April last year because of new rules around calculating runway safety
distances. Airport passenger numbers were up to almost 6.5 million a year before the pandemic but
nosedived during the level 3 and 4 lockdowns. By July 2020, monthly seat sales had picked up to about
two-thirds of where they were at the same time last year but dropped again to less than half of usual
numbers in August. #1137.24

Christchurch Airport will undertake a number of upgrade projects as part of a government effort
to stimulate the economy after the COVID-19 lockdown ended. Projects include an expansion of its
aeronautical support services precinct, expansion of the South Island airfreight capacity, revitalisation of
the Antarctic Support facilities, improving the terminal transport loop, improving the baggage screening
capability, and carbon footprint reduction projects including upgrading terminal lighting. Christchurch City
Council had submitted about USD 718 million worth of projects to the taskforce set up by the
Government to seek out ‘shovel-ready’ infrastructure projects that can quickly stimulate the economy and
create jobs. #1137.25

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Christchurch Airport plans to develop a new international airport, which will compete with
Queenstown Airport. The airport company said discussions were under way for a “world-class sustainable
airport” on 750 hectares of land near Tarras in Central Otago. About USD 32,3 million has been spent on
the project to date, which includes buying the land bordered by state highways 8 and 8A.
Chief executive Malcolm Johns said the concept was to start with a 2,200-meter (7,217-foot)
runway jets would be able to land on. It was planned to be built in modules so it could “start small and
grow to meet any future need”. It could be operational between five and 15 years and cost hundreds of
millions to build. The runway would allow planes up to the size of the Airbus A320, which carries about
180 passengers, to land. Johns said Christchurch Airport had long seen the potential for a new airport in
Central Otago, which would provide widespread social and economic benefits across the South Island.
Tarras is just over an hour's drive from Queenstown, which has been suffering from capacity constraints.
Work on the proposal started before the coronavirus pandemic affected international travel, but Johns
said Covid-19 “doesn't change too much of this proposal, except the timeframes”. #1137.26

A new USD 9-million terminal has opened at Gisborne Airport. “The airport is a high-profile and
vital gateway to the region, which helps support tourism and economic activity and keeps us connected
to the rest of New Zealand,” said Eastland Group chief executive Matt Todd. Eastland Group, the regional
infrastructure company, operates the airport on behalf of Gisborne District Council. The project has been
years in the planning. “The vision was to create a place that reflects and shares the unique stories of Te
Tairawhiti. Construction was delayed slightly due to the Covid-19 lockdown, so to finally see it come to
life is very exciting.” The new terminal was funded by Eastland Group, Trust Tairawhiti, and the Provincial
Growth Fund. Construction began in March 2019. The building was completed in two stages to ensure the
airport kept operating, which was a logistical challenge. The first stage opened in late November 2019.
“This will be the greenest airport terminal in New Zealand, with solar panels, rainwater harvesting,
rammed earth walls and many other innovative features” according to Todd. #1137.27

The passenger terminal of Taupō Airport will be upgraded. The airport is benefiting from a USD
4,24 million government funding boost. The project will work to modernise the current terminal, extend
the car park, and upgrade the runway apron and is expected to create 60 jobs during construction.
Taupō Airport is the gateway to the Central North Island. Visitor numbers to the region had been growing
at a rate of 15 per cent a year. The funding consists of USD 3.6 million from the Provincial Growth Fund
and USD 625,000 from central government. The project will enable larger planes and more travellers to
be accommodated at the airport. #1137.28

                                                                                        Other Regions
BAHRAIN
Bahrain International Airport’s new terminal is set to commence operations from 28
January. This comes after the Prime Minister recently reviewed the airport expansion project
development, along with the new passenger terminal building, which will now be four times the size
of the existing one. In the past two decades, this expansion project has been one of the biggest
national development projects in the region under the air transportation sector.
The new terminal can handle 14 million passengers a year. The project comprises a
considerably larger duty-free shopping area, two reception and hospitality lounges for first class and
business class passengers, a central utility complex, and nearly 5,500 parking spaces. An aviation
fuel farm, a private aviation building offering services for private jet owners and passengers, a
private building for firefighting and rescue services, and a central security gate have also been
constructed. #1137.29

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INDIA
Chennai Airport is gearing up for a makeover project. Authorities are planning a modernisation of
the airport in two phases to provide a world-class terminal to passengers. The estimated cost of the
project is USD 338 million which includes integration of airside corridors, an increase of the number of
contact bays, and integration of multi-level car park and Metro rail, according to the press release by the
Corporate Communication Directorate of the Airports Authority of India on Wednesday.
The modernisation of the Chennai Airport is planned in two stages -- the first stage has seen
dismantling of the existing Domestic Terminal T-2 with an area of 19,250 square metres (207,205 square
feet) for construction of the new facility which is scheduled to be commissioned by June 2021, while the
second phase of Chennai Airport Modernisation commenced in 2019. The second stage will be the
demolishment of International Terminal T-3 and the construction of the New Terminal. The total project
will be commissioned by December 2022.
The new combined terminal (Stage-1 Stage-2) which will function as one large Integrated terminal for
International and Domestic operations, having a total area of 2,18,000 square meters (2,346,532 square
feet). The capacity will grow from 21 million passengers per annum to 35 million passengers
per annum. It will also be GRIHA (Green Rating for Integrated Habitat Assessment) compliant, with
various eco-friendly materials planned to be used during the construction phase. "A host of new facilities
will ensure passengers flow is smooth and safety/security aspects are given equal importance. Apart from
multiple lounges and master concessionaires, Automated Tray Retrieval System (ATRS), Self-Baggage
Drop (SBD) Passenger Flow Monitoring System (PFMS) and Boarding Process Control e-Gates will
enhance passenger convenience," the authorities said. With the commissioning of a multi-level car
parking (MLCP), the present 1200 car parking capacity will increase to 3,000. The buildings will
accommodate a car parking area along with spaces created for commercial use.
The AAI has also taken up works to enhance the efficiency of the operational area (airside) of the airport
by constructing Rapid Exit Taxiways (RET's), taxiways to the main runway (07/25), taxiway straightening
works etc. The RETs will reduce runway occupancy time of aircraft. The Chennai Airport is the fourth
biggest airport in India in terms of passengers handled per year. #1137.30

KENYA
The Kenya Airports Authority (KAA) has started a project to renovate and upgrade Terminals
1B and 1C of Nairobi’s Jomo Kenyatta International Airport (JKIA). The airport is Kenya’s largest
airport, the aviation gateway to the country and the busiest airport in East Africa. The project will run for
12 months and cost USD 8.79 million. It will be focused on the departure halls and will improve the
check-in, security, and retail operations, as well as the passenger lounges. The upgrades will also
improve passenger flow through the terminals. “The refurbishment and facelift of the [Terminal 1B and
Terminal 1C] aims to align the passenger experience in these terminals to match what is offered at
[Terminal 1A],” explained KAA MD and CEO Alex Gitari. “The remodelling project is an integral part of the
ongoing JKIA Customer Service Improvement Plan which was formulated from feedback from our
shareholders and customers.” During the upgrade process, airlines operating from Terminals 1B and 1C
will be temporarily relocated to Terminals 1A and 2. Therefore, passengers are being urged to arrive at
the airport no less than four hours before their flight departure times. #1137.31

MALAYSIA
Malaysia Airports Holdings Bhd (MAHB) is setting aside USD 100 million capital expenditure
(capex) for mission critical projects in 2021, more than double the USD 44.5 million in 2020. The
airport operator also outlined a five-year blueprint, with the first two years focusing on surviving the
fallout of the Covid-19 pandemic. "Our capital expenditure for 2020 was USD 44.5 million and these were
for key projects such as the network upgrade, Runway 3 rehabilitation, and washroom refurbishment,"

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group chief executive officer Datuk Mohd Shukrie Mohd Salleh said. "For 2021, our capex will also be
based on mission critical projects and we expect to spend about USD 100 million. It is very important that
we forge ahead with the mission-critical projects so that we do not compromise on service levels and to
ensure that our airport is future-ready when travel picks up again." Most of these projects are centred
around the Kuala Lumpur International Airport (KLIA).
Mohd Shukrie Mohd Salleh says the airport operator will embark on critical ageing asset replacement
rather than expansion to facilitate traffic when it returns to normalcy. This includes baggage handling
system (BHS), the aerotrain and the refurbishment of all washrooms at the main terminal of the KLIA.
The government, via the Transport Ministry, had in April 2019 extended the OA for MAHB to operate,
manage and maintain airports throughout the country until February 11, 2069. This allows MAHB to
implement a commercial development plan sustainably while improving the revenue-sharing with the
government.
Mohd Shukrie Mohd Salleh said MAHB would focus on business transformation and growth to explore new
revenue stream, creating different market segmentation and uplift its overall revenue, both aeronautical
and non-aeronautical. "We want to ensure ample capacity for growth by optimising capacity with the
modernisation of KLIA Terminal 1 to cater up to 20 million additional passengers. This reduces congestion
at critical passenger processing areas and improve processes and services levels," he added. #1137.32

NEPAL
Biratnagar airport Nepal is getting a USD 128-million facelift that will add a new terminal and
nearly double the length of the existing runway to upgrade to an international facility. Construction work
on the 7,000-square-metre (75,347 square-meter) terminal, which is estimated to cost USD 34 million, is
slated to begin this year. Chief of Biratnagar airport Utsav Kharel said that as per the master plan, the
1,500-metre (4,921-feet) runway will be lengthened to 2,500 metres (8,202 feet), enabling it to handle
narrow-body jets like the Airbus A320 and the Boeing 737. “But we will acquire enough land to enable us
to extend the runway to 3,000 metres (9,842 feet) at a future date.” The cabinet granted permission to
the Civil Aviation Authority of Nepal to acquire the land for the airport expansion project.
The airport expansion project is expected to be completed by 2024, officials said. According to Kharel,
total cost of the upgrade is expected to be upwards of USD 127,8 million. In 2019, 596,453 travellers
passed through Biratnagar airport, making it the second busiest domestic airport after Pokhara. #1137.33

PERU
Lima’s Jorge Chavez International Airport is undergoing a major expansion to transform into
one of the most important airports in South America. It is part of the economic reactivation plan
proposed by the Peruvian Government. The airside development programme will mainly involve the
construction of 10 kilometers (7 miles) of taxiways, a 65 meter-(213-foot) high ATC tower, a second
3,480 meter (11,417-foot)-long runway, and a 250-hectare advanced mid-field apron area to increase the
slots available for aircraft parking. It will also add new operational facilities for fire and rescue services,
surveillance systems, as well as beacons and navigation support equipment. The new runway is expected
to commence operations by late 2022.
The airport served approximately six million passengers in 2020, a decrease of 74%
compared to the previous year due to the Covid-19 pandemic. The airport is operated by Lima Airport
Partners (LAP) which is owned by Fraport (70.01% interest), IFC International Financial (19.99%) and
Peru’s AC Capitales SAFI (10%). LAP concession officially commenced operations in February 2001 and
its licence to operate the airport will run until 2041. #1137.34

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SAUDI ARABIA
Saudi Arabia has put on hold financing plans potentially worth billions of dollars for the
expansion of Riyadh’s airport, a sign that the kingdom is re-assessing strategic priorities after the
coronavirus crisis. Riyadh Airports Company, which manages and operates King Khalid International
Airport in the Saudi capital, approached banks last year with a request for financing proposals on the
planned airport expansion, which sources said would have been worth several billions of dollars. The
expansion was part of the country’s aim to diversify the economy, create jobs and reduce dependence on
oil revenues. The company has now halted the process, three banking sources said. Saudi Arabia
suspended international flights in the aftermath of the coronavirus outbreak, which has brought global
aviation to its knees. The kingdom had begun preparations in 2017 to sell a minority stake in Riyadh
airport, the second biggest in the country. Those plans were also suspended. #1137.35

SERBIA
VINCI Airports is continuing its modernisation work at Belgrade Airport to make it a more
sustainable hub. VINCI Airports, operator of Belgrade Nikola Tesla Airport (BEG), is celebrating the
second anniversary of the Belgrade Airport concession by continuing its modernisation and expansion
work with great strides to make this platform a future sustainable hub in Eastern Europe. By signing a
25-year concession contract with the Serbian government, VINCI Airports is committed to transforming
the airport into a benchmark hub in South-Eastern Europe: Opening new routes, improving flows,
enhancing Serbian heritage and the deployment of environmental policy. Investments over the duration
of the concession will make it possible to renovate the airport, improve its capacity and operational
efficiency and bring quality to the highest international standards, without forgetting to reduce its
environmental footprint. Most airports are challenged to optimally plan for variation in passenger demand
and allocate the required resources at the right time and location.
As such, Belgrade Airport has just unveiled the new central area of the passenger terminal,
after five months of work: A comfortable, bright and connected relaxation area which offers travellers
new ‘walk-through’ shops, a bar-restaurant and a play area, in accordance with VINCI Airports quality
standards. In addition, in 2020, a new waiting area for buses was completed, preparatory work began on
the new track and its traffic lanes, and construction of the new parking lot is nearing completion. On the
environmental front, Belgrade Airport is investing heavily to reduce its carbon footprint, with the
construction of a waste recycling plant and a photovoltaic park, thus joining the Airports Council
International (ACI) Airport Carbon Accreditation (ACA) programme by obtaining Level 1. VINCI Airports is
working to make Belgrade Airport a sustainable infrastructure and raise the airport to Level 2 of the ACA
accreditation. In this context, many investments to reduce carbon emissions are planned: The
replacement of the heavy fuel oil boiler room by a natural gas boiler room, coupled with a tri-generation
unit, replacement of lighting by LEDs and the construction of a 1 MWp solar farm. #1137.36

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