PointeNoire Airport Business Plan Financial Part BOT CONCESSION
Pointe-Noire Airport Business Plan Financial Part BOT – CONCESSION PROJECT Mars 2002
Business Plan - Table of Content • • Executive Summary Initial Investments Development Costs Revenues Operational Expenses Annual Profits Cash Flow ROI • Appendixes
Executive Summary • The Congolese Government and the LR Group have signed a contract to modernize the Pointe-Noire International Airport. • • The modernization of the Airport will contribute to the development of: • –The town of Pointe-Noire and the Kouilou Region • –Congolese national connections and particularly the Pointe-Noire / Brazzaville connection • –International links with African Countries as well as Europe, Latin America and the United States • • The Airport runway has now been extended for long carriers such as the Airbus 330 • – 2. 600 X 45 meter plus 2 X 100 m, a second taxiway and a supplementary Aircraft parking area of 15. 000 m² • –Financed by the Congolese government
Executive Summary • The BOT / Concession Principles: –A company has been established – ADP-N –Shareholdings: • Congolese Government: 22% • Private Investors: 78% –Congolese Partners 26% –International Partners 52% –Construction of New International Terminal (6. 200 m²), Cargo Terminal, Zone Development –Improving Old Terminal, Contribution to Expropriation –Operation of the Airport by ADP-N for more than 18 Years –Contribution for Secondary Airport Development: • 5% of Revenues < 2 Billions FCFA • 7% of Revenues > 2 Billions FCFA
Executive Summary • Pointe-Noire Airport Activities (in 2000) – Movements – Passengers – Cargo (Tons) • • • Initial Investment Development Costs Net Revenues* Expenses* Net Profits(*)(**) * 1 st Year ** Available for Investors 22. 028 357. 511 63. 314 19, 950, 000 USD 500, 000 USD / Year 3, 055, 940 USD 2, 400, 000 USD 511 633 USD
Executive Summary Cash Flow Assumptions • Pessimistic Scenario • –Net Profit 1 st Year: 500, 000 USD • –Growth : 10% first 3 Years; 4. 5% thereafter • –Interest Rate: 4. 75% • • Medium Scenario • –Net Profit 1 st Year: 1, 000 USD • –Growth : 20% first 3 Years; 6. 5% thereafter • –Interest Rate: 6. 75% • • Optimistic Scenario • –Net Profit 1 st Year: 1, 000 USD • –Growth : 25% first 3 Years; 6. 5% thereafter • –Interest Rate: 8. 75%
Executive Summary Return on Investment (ROI) • Pessimistic Scenario –Non-achievable • Medium Scenario – Achievable after 19 Years • Optimistic Scenario – Achievable after 17 Years
ADP-N Shareholdings • Congolese Government: 22% • Private Investors: – Congolese Partners: 78% 26% – International Partners: 52%
Initial Investments • Following Study by LR Group in cooperation with Congo: – Concept, Researches, Experts, … – Meetings with Government Officials, Investors, Airlines … • The Initial Scope of the Investment is: – – – New International Terminal (6200 m 2) Zone Development Improving Old Terminal Cargo Terminal Expropriation
Initial Investment (2)
Initial Investment (3)
Development Costs Starting Year n+1 • Developments of: – – – Trade Free Zones Aircraft Maintenance Area Cargo Areas and Shops Land Side Commerce Access roads in the Airport Environment • Systems: – Advanced Telecommunication systems – Back-up Power Supply • Additional Buildings – Catering (Aircraft Services), Offices, Commerce, Etc. Total: $0. 5 M / Year (Up to 20% of Net Profit)
Revenues - Table of Content • Airlines Operating in Pointe-Noire • Historical Traffic Statistics – Landings – Passengers (National, Regional, Int’l) – Cargo (National, Regional, Int’l) • The Revenues Sources • Annual Income/Revenues
Airlines Operating in PNR in 2000 CONPANY Air Afrique Trans Air Benin Lina Congo TYPE OF A/C DESTINATION 727/100, 200 ; 737/300 International 737/300, 727/100, 200 Antonov 11 International / national Air Gabon 737/300 International Angola Airlines 737/300 International Aero Service 727/100 International Trance Air Congo 727/200 Naional Air Espace 737/300 National Air Atlantis 727/100 National Sources: Experts Mission to PNR October. 2000
Historical Statistics Landings – Year 2000 MOTW/TON NO OF LANDING PER WEEK TYPE/AC TYPE OF MOVMT 3 Cesna 402, BN 20 1 National 5 Cesna 404 6 National 8 Kaza 12 (Fernch Army)) 12 National 22 Antonov 24 54 National 90% Int'l 10% 54 B 737/200 25 30% National 70% Int'l 61 Antonov 12 cargo 14 National 64 Antonov 11 6 Int'l 69 B 737/300 6 Int'l 79 B 727/100 18 National 96 B 727/200 20 National Total Landing 162 per week of which 137 national presenting 85% of total landing and 25 international – 15% Sources: Experts Mission to PNR October. 2000
Historical Statistics – Passengers National Traffic 1999/2000 1 st Quarter (Jan. to March) Company PAX Variation % Repartition % In 1999 2000 1999/2000 1999 2000 Lina Congo 0 12, 027 0 0 16. 6 Trans Air Congo 24, 234 35, 531 46. 6 49. 3 49. 0 Aero Service 8, 710 22, 335 156. 4 17. 7 30. 8 Air Espace 5, 295 1, 066 ( - 80) 10. 8 1. 5 Equaflight 10, 427 0 ( - 100) 21. 2 0 Others 488 1, 544 216. 4 1. 0 2. 1 Total 49, 154 503 , 72 47. 5 100 Sources: Experts Mission to PNR October. 2000
Historical Statistics – Passengers National Traffic 1999/2000 2 nd Quarter (April. to June) Company PAX Variation % Repartition In% 1999 2000 1999/2000 1999 2000 Lina Congo 0 6, 512 0 0 10. 5 Trans Air Congo 36, 626 40, 281 10. 0 66. 0 65. 0 Aero Service 10, 482 12, 712 21. 03 18. 09 20. 5 Air Espace 4, 566 0 - 100 8. 2 0 Equaflight 3, 675 0 - 100 6. 6 0 Air Atlatis 0 1, 564 0 0 205 Others 161 856 431. 7 0. 3 104 Total 55, 512 61, 925 11. 6 100 Sources: Experts Mission to PNR October. 2000
Historical Statistics – Passengers National Traffic 1999/2000 3 rd Quarter (July to Sep. ) PAX Variation% PAX Repartition %In Company 1999 2000 1999/2000 1999 2000 Lina Congo 0 17, 709 0 0 17. 5 Trans Air Congo 51, 649 54, 073 4. 7 69. 8 53. 04 Air Espace 19, 985 19, 485 ( 2. 50 -) 27. 0 19. 02 Equaflight 2, 277 0 (100 -) 3. 1 0 Air Atlatis 0 5 0 0 0 Others 73 10, 079 06. 813, 7 0. 1 9. 9 Total 73, 984 10, 1351 37. 0 100 Sources: Experts Mission to PNR October. 2000
Historical Statistics – Passengers (National Traffic) 1999 / 2000 (Per Year) • Total National Passengers in 1999* : 238, 200 Passengers (in & out) • Total National Passengers in 2000* : 314, 373 Passengers (in & out) * 4 th Quarter = average of 3 quarters Sources: Experts Mission to PNR October. 2000
Historical Statistics – Passengers (Regional Traffic) 1 st Quarter 1999/2000 PAX Variation% Repartition In% Company 1999 2000 1999/2000 1999 2000 Air Gabon 250 183 (26. 8 -) 28. 2 22. 2 Angola Air 58 51 (12. 1 -) 6. 6 6. 2 Lina Congo 2 59 2850. 0 0. 2 7. 2 Aero Service 242 194 (19. 8 -) 27. 3 23. 5 Others 333 337 1. 2 37. 6 - 40. 9 Total 885 824 6. 9 100 Sources: Experts Mission to PNR October. 2000
Historical Statistics – Passengers (Regional) 2 nd Quarter 1999/2000 PAX Variation% Repartition In Company 1999 2000 1999/2000 1999 2000 Air Gabon 8, 873 7, 731 (-12. 9) 82. 5 70. 5 Angola Air 1, 400 1, 932 38. 0 13. 0 17. 6 Lina Congo 0 740 0 0 6. 7 Aero Service 347 539 55. 3 3. 2 4. 9 Others 129 26 (-79. 8) 1. 2 0. 2 Total 10, 749 10, 968 2. 04 100 Sources: Experts Mission to PNR October. 2000
Historical Statistics – Passengers (Regional Traffic) 3 rd Quarter Company PAX Variation % Repartitio n In % 1999 2000/1999 2000 Air Gabon 9, 338 7, 280 (-22) 80. 0 61. 7 Angola Air 1838 1192 (-35. 1) 15. 7 10. 1 Lina Congo 0 2395 0 0 20. 3 426 627 47. 2 3. 6 5. 3 Other 70 303 332. 9 0. 6 2. 6 Total 11, 672 11, 797 1. 07 100 Aero Service Sources: Experts Mission to PNR October. 2000
Historical Statistics – Passengers (Regional Traffic) 1999 / 2000 (Per Year) • Total Regional Passengers in 1999* : 31. 074 Passengers (in & out) • Total Regional Passengers in 2000* : 31. 461 Passengers (in & out) * 4 th Quarter = average of 3 quarters Sources: Experts Mission to PNR October. 2000
Historical Statistics – Passengers (International) By Quarters 1999/2000 1 st Quarter Company Air Afrique Total 2 nd PAX %Variation Repartition %In 1999 8686 2000 3983 1999/2000 (54. 1 -) 1999 100 2000 100 Quarter Company PAX %Variation Repartition %In 1999 2000 1999/2000 1999 2000 Air Afrique 6271 3984 (37. 0 -) 100 Total 6271 3984 (37. 0 -) 100 3 rd Quarter PAX Company Air Afrique Lina Congo Trans Air Benin Total 1999 8749 0 0 8749 PAX Repartition 2000 6248 1144 899 8291 1999/2000 (28. 6 -) 0 0 (5. 2 -) Variation % 1999 100 0 0 100 In % 2000 75. 4 13. 8 100 Sources: Experts Mission to PNR October. 2000
Historical Statistics – Passengers (International) 1999/2000 (Per Year) • Total International Passengers in 1999* : 31. 608 Passengers (in & out) • Total International Passengers in 2000* : 11. 677 Passengers (in & out) * 4 th Quarter = average of 3 quarters Sources: Experts Mission to PNR October. 2000
Historical Statistics Total 1999 / 2000 (Per Year) Movements, Passengers, Cargo 1999 Type 2000 VARIATION % 2000/1999 Movements 18, 450 22, 028 19. 3 Passengers 300, 882 357, 511 18. 8 Fret (Tons) 71, 394 63, 306 ( 8. 60 -) Poste (Tons) 8 Sources: Experts Mission to PNR October. 2000
Annual Revenue First year of Operation • The estimated revenue in the first year of operation include: – The actual level of activity • combine with – New commercial development by LR Group • The estimation is done on the bases of statistical data from year 2000.
Annual Revenue Sources– First Year Estimation* F CFA • Revenues from Passenger Taxes Fees – Passenger Departure (National): 157. 186 X 3. . 500 F CFA……. . – Passenger Departure (International): 21. 569 X 12. 400 F CFA…. • 550. 151. 000 267. 455. 600 Revenues from Landing Fees – National Landings according to average of 54 MTOW Tones • 85% of 22. 028 Movements: 2 X 67. 210 F CFA…………………. 629. 213. 299 – International Landings according to average of 54 MTOW Tones • 15% of 22. 028 Monuments: 2 X 80. 330 F CFA…………………. . • Cargo Fees – 63. 306. 000 X 20 F CFA………… 1. 266. 120. 000 – Consequence of Train Renewal Operations (60% of above)…. • 132. 713. 193 759. 672. 000 Aircraft Parking Fees – 22. 028 Movements: 2 X 1. 5 h above 2 first hours X 22 X 120 F CFA 43. 615. 440 • Gasoline Passage Fees – 22. 028 movements: 2 X 5. 000 galloons X 1. 36 F CFA…………. . * Based on 2000 statistics 74. 895. 200 Sources: Experts Mission to PNR October. 2000
Annual Revenue – First Year Estimation* • Total Fees Revenues: 2. 458. 715. 732 F CFA • Total Commercial Revenues: 12. 720. 000 F CFA • Total in USD: 3. 251. 000 * Based on 2000 statistics Sources: Experts Mission to PNR October. 2000
Operational Expenses Organization Chart Airport Director F. Tsimba Maintenance Division Air Traffic Division Human Resources Division Accounting Division Collection Division Meteorologic al Division A. Ambetos Mrs. Mouluki Mrs. Ngokouba Mrs. Y. Ntaloulou Mr. Benjamin Terminals Movements, Passengers, Aircrafts Reports Recruitment & Training Central Garage Statistics Department Organization & Administration Buildings & Warehouses Airlines Billing Airport Fees Transport Department Budgetary Control Suppliers’ Payments Licenses Department Salary Department Salaries’ Payments Airport Services Fees Airport Fees Commercial Revenues Pilots Debriefings Meteorologic al Debriefings
Operational Expenses Monthly Summary Expenses • Salaries (BOT Conditions) 75. 000 USD – 75 Congolese Employees – Social security, Medical care, Social Allocations • Services & Sub-Contractors 80. 000 USD – Electricity, Water, Telecommunication – Airport Services • Management Expenses • Consumables & Small Investments 25. 000 USD 20. 000 USD Annual Summary Expenses 2. 400. 000 USD
Annual Profit – st 1 Year • Assumptions (BOT Conditions) – Congo Government Part 22% – Contribution for Secondary Airports Development 5% from Income < 2 Billions F CFA 7% from Income > 2 Billions F CFA » Average: 6% • • Gross Revenues Net Revenues 3. 251. 000 X 94% Expenses Profits 3. 055. 940 – 2. 400. 000 • Net Profits* 655. 940 X 78% * Available for Investors 3. 251. 000 USD 3. 055. 940 USD 2. 400. 000 USD 655. 940 USD 511 633. 200 USD
Cash Flow • Assumptions – Revenues Increases • New Runway 2600 m / 45 m + Tarmac & TW (Summer 2002) • LR Group Management Experience – Expenses Control – Profits Sharing • Pessimistic Scenario • Medium Scenario • Optimistic Scenario
Cash Flow – Pessimistic Scenario Assumptions 1. 2. 3. 4. 5. 6. 7. LR investment in BOT contract grew from 15 M USD to 19, 75 M USD due to the increase of the terminal from 3. 000 M 2 to 6. 200 M 2. There were major changes from the original 1999 forecast: a) International traffic goes now to Brazzaville and already now traffic is 54% less than 1999 b) Train line Pointe Noire- Brazzaville will dramatically reduce Cargo traffic. Net Profit is calculated after payment of "concession fees" in any form to Congo. 4. 5% is the International general aviation rate of growth 10% rate of growth for 3 years upon operating the new Terminal and the extended runway. 8. 75% is the best finance rate that can be achieved for investments in Africa without any risk premium. Nevertheless, we are applying 4. 75%. Any additional investment will require extension of the concession period in order to recover it.
Cash Flow – Pessimistic Scenario
Cash Flow – Medium Scenario Assumptions 1. 2. 3. 4. 5. 6. 7. LR investment in BOT contract grew from 15 M USD to 19, 75 M USD due to the increase of the terminal from 3. 000 M 2 to 6. 200 M 2. Although there were major changes from the original 1999 forecast, we believe that with LR management the level of the nominal income of 1999 will be kept as a basis for 2000 and onwards. Net Profit is calculated after payment of "concession fees" in any form to Congo. LR management will achieve a higher rate of growth than the international aviation rate. 20% rate of growth for 3 years upon operating the new Terminal and the extended runway. 8. 75% is the best finance rate that can be achieved for investments in Africa without any risk premium. Nevertheless, we are applying 6. 75%. Any additional investment will require extension of the concession period in order to recover it.
Cash Flow – Medium Scenario
Cash Flow – Optimistic Scenario Assumptions 1. 2. 3. 4. 5. 6. 7. LR investment in BOT contract grew from 15 M USD to 19, 75 M USD due to the increase of the terminal from 3. 000 M 2 to 6. 200 M 2. Although there were major changes from the original 1999 forecast, we believe that with LR management the level of the nominal income of 1999 will be kept as a basis for 2000 and onwards. Net Profit is calculated after payment of "concession fees" in any form to Congo. LR management will achieve a higher rate of growth than the international aviation rate. 25% rate of growth for 3 years upon operating the new Terminal and the extended runway. 8. 75% is the best finance rate that can be achieved for investments in Africa without any risk premium. Any additional investment will require extension of the concession period in order to recover it.
Cash Flow – Optimistic Scenario
Cash Flow – Present value Chart Data
ROI – Summery Chart
ROI • As Seen in the Cash Flow Tables and Chart, The Break Even Period is: • Pessimistic Scenario. ……. >> Years • Medium Scenario……………. 19 Years • Optimistic Scenario…………. . 17 Years
Appendix 1 Historical Statistics 2000/2001 International Movements 1 st Semester Company Air Afrique Movements 2000 2001/2000 234 227 Trans Air Benin 0 102 Lina Congo 0 63 243 392 Total Variation % -6. 58 Repartition In % 2000 2001 100 57. 3 100 26. 4 16. 3 61. 31 100
Appendix 1 (2) Historical Statistics 2000/2001 Regional Movements 1 st Semester Company Movements 2000 2001 Variation % 2001/2000 Repartition In % 2000 2001 Air Gabon 427 504 18. 03 25 19. 5 Angola Air (TAAG) 111 192 72. 97 6. 5 7. 4 Lina Congo 183 11 -93. 98 10. 7 0. 4 Aero Service 332 483 45. 48 19. 4 18. 7 Other 655 1395 112. 97 38. 4 54 Total 1. 708 2. 585 51. 34 100
Appendix 1 (3) Historical Statistics - 2000/2001 National Movements 1 st Semester Company Lina Congo Movements 2000 2001 Variation % 2001/2000 Repartition In % 2000 2001 679 767 12. 96 7. 4 10. 7 T. A. C 3788 1982 -47. 67 41. 3 27. 7 Aero Service 1720 1821 5. 87 18. 7 25. 5 Equaflight 602 0 6. 6 0 Air Atlantis 360 212 3. 9 3 A. A. C. 0 332 0 4. 6 Others 2026 2037 0. 54 22. 1 28. 5 Total 9. 175 7. 151 -22. 05 100 -41. 11
Appendix 1 (4) Historical Statistics 2000/2001 International Passengers 1 st Semester Company Air Afrique PAX Variati on % Repartition In % 2000 2001/2000 7931 6716 Trans Air Benin 0 Lina Congo Total -15. 31 2001 100 51. 3 5251 0 40. 2 0 1099 0 8. 4 7. 931 13. 066 100 64. 74
Appendix 1 (5) Historical Statistics - 2000/2001 Regional Passengers 1 st Semester Company Air Gabon Movements Variation % Repartition In % 2000 2001/2000 2001 13851 17678 27. 62 64. 5 66. 6 Angola Air (TAAG) 3479 5303 52. 42 16. 2 20 Lina Congo 2703 323 -88. 05 12. 6 1. 2 Aero Service 1067 815 -23. 61 4. 7 3 Other 375 2436 549. 6 1. 7 9. 2 Total 21. 475 26. 555 23. 65 100
Appendix 1 (6) Historical Statistics - 2000/2001 National Passengers 1 st Semester Company Movements 2000 2001 Variation % 2001/2000 Repartition In % 2000 2001 Lina Congo 18539 24429 31. 77 13. 8 16. 3 T. A. C 75812 70070 -7. 57 56. 4 46. 9 Aero Service 35047 34561 -1. 38 26. 1 23. 1 Air Espace 1066 0 0. 8 0 Air Atlantis 1564 5107 1. 1 3. 4 A. A. C. 0 13945 0 9. 3 Others 2400 1447 -39. 7 1. 8 1 134. 428 149. 559 11. 25 100 Total 226. 53
Appendix 1 (7) Historical Statistics 2000/2001 International Cargo 1 st Semester Company Movements 2000 2001 Variation % 2001/2000 Repartition In % 2000 2001 Air Afrique 530 268 -49. 43 100 Total 530 268 -49. 43 100
Appendix 1 (8) Historical Statistics 2000/2001 Regional Cargo 1 st Semester Company Air Gabon Angola Air (TAAG) Lina Congo Others Total Movements Variation % Repartition In % 2000 2001/2000 2001 595 749 25. 88 79. 8 73 63 49 -22. 22 8. 4 4. 8 0 7 0 0. 7 88 221 151. 13 11. 8 21. 5 746 1026 37. 53 100
Appendix 1 (9) Historical Statistics 2000/2001 National Cargo 1 st Semester Company Lina Congo Movements 2000 2001 Variation % 2001/2000 Repartition In % 2000 2001 328 282 -14. 02 1. 1 2. 1 14. 368 3766 -73. 78 47. 3 27. 6 Aero Service 1870 1070 -42. 78 6. 2 7. 8 Equaflight 3225 0 10. 6 0 A. A. C. 0 64 0 0. 5 Others 10574 8457 -20. 02 34. 8 62 Total 30. 365 13. 639 -55. 08 100 T. A. C
Appendix 1 (10) Historical Statistics Total Movements, Passengers, Cargo 1 st Semester 2000 / 2001 Type 2000 2001 VARIATION % 2000/2001 Movements 11. 126 10. 122 -9. 02 Passengers 163. 834 189. 180 15. 47 Fret (Tons) 21. 641 14. 933 -30. 99 Poste (Tons) 4 9 125
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