IMI: THE SENEGALESE GOVERNMENT INVITES EXPRESSIONS

UNCLAS SECTION 01 OF 02 DAKAR 000612 SIPDIS SIPDIS USDOC FOR 3131/OIO/ANESA/MSTAUNTON/GLITMAN USDOC FOR 4510/IEP/ANESA/OA/PMICHELINI USDOC FOR 3140/ODO/BANDERSON STATE FOR EB/CBA, EB/IFD/OIA, AF/EPS AND AF/W ECOWAS POSTS FOR ECONOMIC/COMMERCIAL OFFICERS MONTREAL FOR US MISSION TO ICAO E.O. 12958: N/A TAGS: BEXP EAIR EINV SG SUBJECT: IMI: THE SENEGALESE GOVERNMENT INVITES EXPRESSIONS OF INTEREST FOR THE PROJECT DESIGN AND MANAGEMENT OF THE BLAISE DIAGNE INTERNATIONAL AIRPORT DAKAR 00000612 001.2 OF 002 ¶1. SUMMARY: President Wade,s dream project to build a new airport in Diass, a rural community located 45 kilometers (km) from Dakar, Senegal,s capital, is coming true. The Senegalese government, through Senegal,s Investment Promotion Agency (APIX),has set the stage first by creating &Aeroport International Blaise Diagne SA8 (AIBD SA),a public-private company in charge of financing, construction and development of the new Blaise Diagne airport. APIX is calling for expressions of interest from companies or consortia in the airport development and management business. The new Blaise Diagne Airport is expected to accommodate 3 million passengers the first year of operation. Its planned construction has become a de-facto cornerstone for both the government,s overall economic development strategy and its long-term strategy to position Dakar as a hub of economic and commercial activities in the sub-region. END SUMMARY. APIX,S LEGAL FRAMEWORK FOR BOT PROJECTS -------------- ¶2. The new international airport is a flagship of Senegal,s infrastructure projects. After numerous false starts, it seems that things are on the right track. Recent legislation passed in February 2004 approved the bill establishing the regulatory framework for Build-Operate-Transfer (BOT) infrastructure projects. The Parliament also established an Infrastructure Council, made up of 12 members, among which are 3 magistrates, 3 parliamentarians, members of the civil society and the private sector. The Council will ensure transparency and open procurement for Government projects. Both laws are now in place to promote a transparent regulatory environment expected to pave the way for Private-Public-Partnerships. APIX Creates AIBD SA ... -------------- ¶3. In February 2006, APIX created Aeroport International Blaise Diagne (AIBD SA),a public private company )- owned 45 percnt by the Government and 55 percent by private entities -) charged with financing, construction and development of the new Blaise Diagne airport. AIBD SA reflects the spirit of the Public-Private-Partnership. AND WORKS WITH MOROCCAN BMCE FOR STRUCTURED-FINANCE -------------- -------------- ¶4. Lacking the money to build a new airport, the Senegalese Government with the assistance of a Moroccan investment bank )- BMCE )- devised a scheme to levy passenger charges of 30 euros per ticket on international flights from/to Senegal, and euro 1 per ticket on national destinations. This financing scheme was established in April 2005. According to BMCE, during the first year of implementation, 22.5 million euros, based on 750,000 passengers, will be raised. Estimates of the cost of the project are in the neighborhood of 259 million euros, out of which 220 million will be debt-financed and the remaining 39 million will be financed by the private sector. A NEW AIRPORT TO MEET GROWING DEMAND -------------- ¶5. Once completed, the new airport will replace Dakar,s Leopold Sedar Senghor (LSS) airport, which, in 2005, handled 1,480,000 passengers and moved more than 25,000 metric tons of international freight. Airport officials predict passenger traffic growth of 4 percent annually, which is more than the LSS airport can handle with only two runways and 15 parking bays for commercial planes. At current traffic rates, the existing airport will reach capacity in five years. Senegal,s strategic location on the westernmost point in Africa makes it a natural hub for West Africa and a major stopover and refueling point for commercial and military aircraft continuing on to other African countries. Senegal is a major tourist destination, and government officials hope to increase the number of tourists in Senegal to 600,000 in 2006, up from 500,000 in 2004-2005. BLAISE DIAGNE AND THE MCA PROPOSAL -------------- ¶6. The construction of the airport in Diass falls under DAKAR 00000612 002.2 OF 002 urban plans to move development off Dakar,s Cap Vert peninsula into the mainland toward Thies, Dakar,s second largest city. Diass ties in perfectly with Senegal,s Millenium Challenge Account (MCA) proposal to implement the Diamniadio industrial platform on 2,500 hectares not far from the new airport site. The on-going construction of a new highway between Dakar and Thies will improve traffic flow between Dakar and Diass. BID SPECIFICATIONS -------------- ¶7. The selected airport management company will assist AIBD SA in the following: -- validation of the master plan, -- final design of the Blaise Diagne airport and, -- finalization of the specs document for the selection of the construction firm ¶8. Airport management companies willing to respond to this offer may form a consortium or act individually. They have to demonstrate international experience through similar management contracts with passenger volumes in excess of 5 million annually. They must provide proof and references demonstrating their qualifications for the above-mentioned services. They must detail the airport projects in which they have been involved and the services offered, the countries of operation and the main conditions of their intervention. ¶9. The deadline for submission is Friday, March 27, at 1700 Dakar time (GMT). All proposals must be inserted in a sealed envelope with &Aeroport International Blaise Diagne: Avis d,appel a manifestation d,interet ) Selection d,un gestionnaire8 and sent to: AIBD SA c/o BMCE Capital Avenue Abdoulaye Fadiga Immeuble Abdou Lahat Mbacke B.P. 50275 Dakar Tel: 221-889-05-05 Fax: 221-842-59-99 Email: a.chmanti@bmcek.com.sn JACKSON