CV Airports

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VINCI Airports (or VINCI, an IFC client since 2004), together with its wholly owned subsidiary, ANA –   Aeroportos de Portugal (the Sponsors), signed a 40-year Concession Agreement (CA) with the Government of Cabo Verde on July 18, 2022, to finance, design, build (upgrade and/or expand), operate and maintain seven existing airports (4 international and 3 domestic) in Cabo Verde. The airports are currently operated by Aeroportos e Segurança Aérea (ASA), a state-owned company. The CA will be executed by Cabo Verde Airports S.A. (CVA) established by the Sponsors in Cabo Verde. The CA is expected to commence in the third quarter of 2023. 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 (SFE) on Fogo Island; and vii) Maio Airport (MMO) on Maio Island. The airports are mostly surrounded by uninhabited land. VXE, SNE, SFL and MMO have some isolated structures located at least 200 away from sections of the airport perimeters. With respect to SID, BVC and RAI, parts of the city of Espargos, Rabil town, and the communities of Palia and Chave Grande (suburbs of the city of Praia), are located close to sections of their respective airport perimeters. The investment plan will be split into two phases, (Phase 1-A and Phase 1-B), including both mandatory works and additional works required to accommodate traffic growth. IFC will provide a senior loan of up to EUR 30 million along with hedging products to fund the capital expenditures of Phase 1-A (or the project). Phase 1-A is expected to be completed within two years, and consists of (i) mandatory works to ensure 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), and installation of renewable energy infrastructure (solar and wind) at the four international airports, and (v) integration into the VINCI network.  Phase 1-B will include additional works related to capacity increases to handle forecasted traffic at an optimum level of service at all times as well as environmental improvements. The Phase 1-B will be initiated when passenger and air traffic volumes have recovered to 2019 levels.