BAA consortium wins bid for Oman airports

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BAA announced today its consortium, with local partner Suhail Bahwan Group and ABB Equity Ventures has won preferred bidder status for the privatisation of Seeb and Salalah airports in Oman.

The award comes after a competitive bidding process involving six international consortia. BAA is believed to have been selected from a final shortlist of two, against a consortium of Singapore Changi and Manchester airports with Bechtel Group and local partner Zubair Corp. Seeb International airport serves the capital Muscat, while Salalah is in the south of Oman with growth potential for tourism and freight traffic.

Final contractual negotiations will involve the winning consortium taking a 75% stake in NewCo, which will in turn have a 25-year contract to manage and develop the airports, including retail. BAA will have a 25% stake in NewCo and the other shareholders will be Suhail Bahwan Group 35%, ABB with 15% and with the government retaining a 25% stake. NewCo will invest $210m in the airports including a new terminal at Seeb airport scheduled to open in 2006.

The airports will be handed over to the new BAA/Bahwan management team on 1 January 2002 with a transition process beginning next month. Commenting on the appointment, BAA's international director Terry Morgan said: "This is an exciting opportunity for BAA and our first entry in the Gulf region. Our plans for the new terminal will help Seeb International airport secure a leading position in aviation in the Middle East.

"We will also develop the commercial and retail facilities at the airports, target route development and provide general airport management expertise."