Cairo International Airport

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In December 2004, Civil Aviation Ministry (on behalf of the Government of Arab Republic of Egypt) awarded an eight year management contract to Germany’s Fraport AG to manage Cairo International Airport (CIA). The management contract did not require any capital investment from Fraport AG. CIA had three terminals - two passenger and one cargo. Two of the terminals were already operational. The third terminal was under construction with World Bank funds and due for completion in 2007. The management contract was a requirement for the US$ 335 million loan from the World Bank, which covered projects to double capacity at CIA and Sharm- el Shaikh Airport. Fraport AG won the international competitive tender, conducted by Civil Aviation Ministry in June 2004, by making the lowest revenue sharing offer. The exact value of the management contract was not publicly available but Fraport AG was estimated to receive between US$ 1 million and US$ 1.5 million annually in operating fees. The management fee was split into a fixed part and an additional part that depended on Cairo Airport’s operating earnings. In January 2005, Fraport took over the management of CIA. CIA served 10 million passengers in 2005. None None