CV Airports II

pending

In 2022, the Government Republic of Cape Verde awarded to VINCI Airports a Concession to operate, manage, finance and maintain 7 airports (4 international airports and 3 aerodromes). On July 18th, 2022, a Concession Contract was signed between the Republic of Cape Verde and Cabo Verde Airports, S.A. (CVA, subsidiary of VINCI Airports), the concessionaire of all airports effective from July 2023. The CA is executed by Cabo Verde Airports S.A. (CVA or the Company) established by the Sponsors in Cabo Verde. The airports under the project are i) Amílcar Cabral International Airport (SID) on Sal Island; ii) Nelson Mandela International Airport (RAI) on Santiago Island; iii) Aristides Pereira International Airport (BVC) on Boa Vista Island; iv) Cesária Evora International Airport (VXE) on São Vicente Island; v) Preguiça Airport (SNE) on São Nicolau Island; vi) São Filipe Airport (SFL) on Fogo Island; and vii) Maio Airport (MMO) on Maio Island.The investment plan was split into two phases, (Phase 1-A and Phase 1-B), including both mandatory works and additional works required to accommodate traffic growth. Phase 1-A consists of (i) mandatory works to ensure International Civil Aviation Organization (ICAO) compliance at all international airports, (ii) operations safety improvements at the domestic airports, (iii) passenger experience, commercial and/or technical improvements at passenger terminal buildings, (iv) environmental improvements including in relation to drainage, resource and systems efficiency (water and energy use),  (v) installation of renewable energy infrastructure (solar) at the four international airports, and (vi) integration into the VINCI network.  Phase 1-B include additional works related to capacity increases to handle forecasted traffic at an optimum level of service at all times planned for when passenger and air traffic volumes recover to 2019 levels as well as environmental improvements.In 2023, IFC funded Phase 1-A activities together with other DFIs. An Environmental and Social (E&S) due diligence was completed for both phase 1-A and Phase 1-B activities. The E&S Review Summary (ESRS) and E&S Action Plan (ESAP) for Phase 1-A were disclosed on the IFC disclosure site on April 7, 2023 - https://disclosures.ifc.org/project-detail/ESRS/43450/cv-airports. Based on a site supervision conducted in April 2025, the E&S performance of the Phase 1-A project is satisfactory. The proposed investment comprises (i) an IFC sustainability-linked A loan and (ii) the provision of interest rate swaps on a portion of the loan amount. The loan amount will be primarily used to cover part of EPC costs for the Phase 1-B works with key investments including (a) terminal expansion at five airports, (b) installation of solid waste treatment facilities including incinerators, wastewater treatment plants and implementing a fire vehicle training water recycling system at all international airports as well as providing solid waste systems (excluding incinerators) and septic tanks at three aerodromes, and (c) the BVC international airport runway expansion totalling 400m  and Airfield ground lighting adequation for night operation. CVA will start designing the runway expansion in-house and package the rest of Phase 1-B works for an Engineer Procure Construct (EPC) contract to be awarded by late 2025. Construction will begin in early 2026 and is expected to run for 36 months and be complete by the end of 2028.