Sangster International Airport Montego Bay

completed

The proposed project comprises the operation and expansion of SIA under a 30-year BOT concession granted by the government of Jamaica (GOJ) to the project company, MBJ Airports Limited (MBJA), a special purpose company to be formed by the sponsors. The proposed project includes the expansion and improvement of the existing terminal and the construction of a new concourse to handle approximately 5 million passengers annually. Construction will include the supply/installation of all equipment normally associated with a modern terminal building. Equipment to be supplied will be of proven technology. Revenue will accrue from all normal airport sources, both aeronautical and non-aeronautical. A new Airport Improvement Fee, per departing international passenger, will be put in place to pay for part of the capital expenditures. SIA is of significant importance as an integral part of Jamaica''s tourism infrastructure. Therefore, expansion and modernization of the SIA facility have been recognized as a high priority by the GOJ to cater for the increasing levels of passenger throughput. In this context, the proposed project will relieve the current capacity constraints at SIA and improve its operating efficiency using international best practices in the airport and construction industries. This would significantly benefit the tourism industry and help the country to further develop this important sector of the economy. YVRAS will provide Technical Services on airport operations transfering their know-how to Jamaica, resulting in upgrading of skills of the local workforce. The shareholders will also provide their experience and skills in management and financing. Furthermore, the success of this high profile project will also encourage foreign investments and further private sector participation in other airports and other sectors such as roads and ports.IFC''s investment in the proposed project will provide long-term financing necessary for a concession-based project at a reasonable cost. Long-term financing is practically non-existent in Jamaica from either domestic or foreign sources. IFC''s involvement in the project will act in as a catalyst for additional financing through the B loan syndication. IFC also participated in the negotiations of the concession.