MUSCAT - The government is to reassume the management of the Seeb International Airport here and the Salalah Airport in the southern region following financial disagreements with the private company that was awarded a long-term contract to manage the two facilities more than two years ago, it emerged here yesterday.
The Oman Airport Management Company (OAMC), which was awarded the contract in the privatisation of the two airports in September 2001, will hand over their management back to the government on November 17, according to a joint statement. OMAC had taken over responsibility for the airports in January 2002. OMAC is 75 per cent owned by Capital Aviation Services (CAS), 20 per cent by the government and five per cent by Oman Aviation Services. CAS, a company incorporated in the Sultanate, in turn, is owned by the Suhail Bahwan Group (47 per cent), British Airport Authority (33 per cent) and ABB Equity Ventures (20 per cent).
In addition to the equity commitment, BAA held a Technical Consultancy Agreement for the duration of the concession.
"Although many options were explored, either parties - the Government of the Sultanate of Oman and the partners of OAMC - regret not to reach an agreement on the financial basis for the development of the new terminal at the Seeb International Airport," the statement said.
The two sides, it further said, agreed to handover the management of both airports back to the government, adding: "Safety, security and efficiency at both airports, together with safeguarding the future of OMAC staff, are the top priorities during the transition period."
OAMC was chosen for the project from out of nearly 100 international and local consortia that had tendered for it. As per terms of the contract, the company was to invest about RO74 million initially and a further RO60 million after 15 years in developing facilities at the two airports.
The main element of the investment was the construction of a new terminal at Seeb, to be completed at the end of 2005 or early 2006. The plans included making the Seeb airport one most modern in the Middle East.
The new terminal was to be expanded to cover an area of 86,000 square metres, providing more than double the existing space of 39,000 square metres, with a capacity to handle 6.5 million passengers per annum at IATA service B levels.FROM RAVINDRA NATH
© Khaleej Times 2004
