CONTENT PREVIEW
Airports

Development banks come to the fore

30 January 2019
The African Development Bank helped to fund construction of Terminal 3 at Kotoka International Airport in Ghana. Source: GHAFLA

Recent examples underline the importance of regional development banks as a source of funding for infrastructure upgrades in emerging aviation markets

Soaring air traffic is prompting multilateral regional financial institutions to channel funds for airport upgrades. Typically, national governments submit their requests to regional banks, which appraise the proposal before reaching a verdict. Regional banks offer a lower interest rate and much longer term compared with commercial banks. Hence, over recent years, regional banks have provided considerable financing for airport upgrade and construction projects.

Africa

In November 2018, the African Development Bank (AfDB) pledged EUR75 million (USD85.6 million) in financial support for expansion and modernisation of the underutilised Rabat Salé International Airport in Morocco. Most of the loan is likely to be spent on expanding the cargo terminal, generating up to 1,700 jobs.

Also in November, an AfDB-financed airfield expansion project began at Jomo Kenyatta International Airport (JKIA) in Nairobi, Kenya. The Kenya Airports Authority (KAA) is the implementing agency.

A soft loan for the project was approved in November 2017. The project involves construction of a 4,900 m-long second runway that meets ICAO Category II standards, including connecting taxiways, additional parking stands for aircraft, and an aircraft rescue and firefighting facility. In addition to the USD113.4 million AfDB loan, the Kenyan government is investing USD20.9 million.

The KAA wants JKIA to become a regional hub that facilitates increased tourism and business travel to Kenya and expedites cargo traffic. The airfield upgrade is designed to enhance the reliability of air transport to and from JKIA by reducing delays at peak hours and costly flight diversions arising from incidences on the existing runway. Adding a second runway will address operational efficiency problems inherent in the existing single-runway facility.

New airfield facilities will also open up new markets for Kenyan horticultural exports (especially flowers) by enabling direct intercontinental flights to North America and Australia.

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RELEVANT PROFILE LISTINGS

  • POITIERS BIARD

    PIS/LFBI AIRFIELD REF PT.: N46 35.15 E000 18.24 ELEVATION : 423' 129m CFR : 5 MAX RWY LENGTH : 7,710' 2,350 m General Information SURFACE : Rwy 03/21, 7,710' 2,350 m, width 148' 45 m, asphalt, PCN 44 F/C/W/T. ADDITIONAL RUNWAYS : Rwy 03R/21L, 2,297' 700 m, width 148' 60 m, grass, Rwy 03L/21R,

  • HORTA

    HOR/LPHR AIRFIELD REF PT.: N38 31.19 W028 42.95 ELEVATION : 118' 36m CFR : 6 MAX RWY LENGTH : 5,233' 1,595m General Information SURFACE : Rwy 10/28, 5,233' 1,595 m, width 148' 45 m, asphalt. ADDITIONAL RUNWAYS : None. RUNWAY LIGHTING : Rwy 10: LIRL, REIL, ALSF-2, PAPI.Rwy 28: LIRL, REIL, ALSF-2,

  • PICO

    PIX/LPPI AIRFIELD REF PT.: N38 33.16 W028 26.29 ELEVATION : 109' 33m CFR : 0 MAX RWY LENGTH : 5,725' 1,745m General Information SURFACE : Rwy 09/27 Twy, 5,725' 1,745 m, width 148' 45 m, asphalt, PCN 80 F/B/W/T. ADDITIONAL RUNWAYS : None. RUNWAY LIGHTING : Rwy 09: LIRL, PAPI.Rwy 27: LIRL, ALSF-2,

  • SANTA MARIA

    SMA/LPAZ AIRFIELD REF PT.: N36 58.28 W025 10.24 ELEVATION : 308' 94m CFR : 7 MAX RWY LENGTH : 10,000' 3,048m General Information SURFACE : Rwy 18/36, 10,000' 3,048 m, width 197' 60 m, concrete. ADDITIONAL RUNWAYS : Rwy 15/33, 6,004' 1,830 m; Rwy 04/22, 4,345' 1,324 m; both asphalt; both closed.

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