Bidders line up for Seeb airport

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Sixteen groups have submitted expressions of interest (EOIs) for the contract to manage and develop the Omani airports of Seeb and Salalah airports for a 25-year period. Officials at Credit Suisse First Boston (CSFB), adviser to the government for the privatisation process, say they are pleased with the level of interest. Seeb will become the first major international airport in the Middle East to be privatised.

The government will retain a 20% stake in the new company that will be formed to run the airports. Out of the private shareholding, foreign companies can take from 35% to 60% while between 15% and 40% must come from local investors. Oman Aviation Services Co, which operates one of Seeb airport's two duty-free stores, will hold the remaining 25% stake.

Discussions between the government and CSFB are beginning, aimed at narrowing down bidders into a shortlist. Final offers are due to come in by the middle of the year. Middle East Economic Digest (MEED) reports that most of the major international airport authorities have taken part in the initial bidding round, with their respective Omani partners. BAA is believed to have bid with Bahwan Trading Company and San Francisco International airport has bid with the local OTE Group. Vancouver Airport Services, Singapore Changi, Manchester, Venice, Frankfurt, Zurich, Munich airports and Aeroports de Paris have all joined with other consortia. Dubai Duty Free and Weitnauer Holding are also believed to have registered their interest. The contract includes the construction of a new 5m-passenger-a-year terminal at Seeb and retail expansion.