Sihanoukville International Airport

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In July 2006, Societe Concessionnaire des Aeroports (SCA) signed a 35 year concession to rehabilitate, expand and manage Sihanoukville International Airport in Sihanoukville, Cambodia. SCA was expected to complete the project in two phases which was estimated to cost SCA US$250 million over the lifetime of the project in two phases. SCA was a Cambodia-based joint venture between France’s Vinci SA (holding 70-percent) and Malaysia’s Muhibbah Engineering (holding 30-percent). SCA completed the $8 million renovation of the airport as phase one of the project in January 2007, when it finished all tasks required to reopen the airport. The second phase involved the lengthening of the runway from 1.8km to 2.2km and the construction of a new terminal. The second phase was expected to cost $100 million and be completed by 2014. SCA expected the airport to serve two million passengers annually, after completion of all work on the airport. Total project cost was $40.1 million until 2010 included Terminal Expansion at SRIA (2006) for $6.4 million (15.9%), Capital Expenditure at SIA in 2006-07 for US$ $9.7 million (24.2%), and runway investment at SIA in 2008-10 for $24.0 million (59.9%). Such investment program consisted of the mandatory capital investments required under the concession for SIA for 2006 and 2007; the terminal capacity increase at SRIA to provide service to the increasing passenger growth; and the capital investments required at SIA in 2008-10, should traffic at the airport increase in accordance with the company’s projections. The project company secured $35 million in funding from IFC (US$17.5 million)and French Proparco (US$17.5 milion). The IFC provided SCA with a $7.5 million loan, as well as upto $10 million in stand-by funding. SCA was previously awarded a concession for two other Cambodia airports – Phnom Penh Airport, and Siem Reap Airport. Both concessions were extended by 20 years shortly before SCA won the Sihanoukville concession. As of June 2007, the airport was operational.