Angola is looking for a partner to operate its new $3 billion international airport in Luanda, the capital city, for up to 40 years. The tender, which opens on Friday, is expected to attract interest from airport management companies across the world and generate around $700 million for the Angolan government.
The new airport, named after the country’s first president Dr. Antonio Agostinho Neto, was officially inaugurated last week, after six years of delay. It is one of the largest infrastructure projects in Africa and a key part of President Joao Lourenco’s plan to diversify the economy away from oil dependence and boost tourism and foreign investment.
The airport has a capacity of 15 million passengers a year and is designed to become a regional hub for transit and trade. Transport Minister Ricardo Viegas d’Abreu said the government was looking for a partner that could open up new routes and destinations and bring more airlines to Angola.
“We’re looking for a player that can open up new routes, open up new destinations, bring new carriers to Luanda and to Angola as well,” he said in an interview on Thursday. “We want to turn Luanda into a very important hub in terms of transit for passengers.”
The minister said the government had already received several letters of interest from airport operators in Europe, the Middle East, Africa and Asia, and that he preferred proposals from experienced operators over those from investment funds. Only companies that have managed airports with a capacity of at least 10 million passengers a year are eligible to apply.
The airport concession is for 25 years and can be extended by another 15 years. The airport is currently managed by the state. The minister said the final decision on the new operator should take nine to 10 months.
Angola is also working on restructuring its national airline TAAG before seeking a partner for the state-owned carrier, which posted a net profit of 460 million kwanza ($550,840) in 2022, compared with a loss of 80 billion kwanza the previous year.
The minister said the government hoped to engage with an international partner for TAAG by 2025 but had not decided on the percentage or the terms of the sale. He said the airline’s main attraction was its links to Angola’s provinces and regular flights to Portugal and Brazil.
Angola’s efforts to modernize its aviation sector come amid a global recovery in air travel after the pandemic. According to the International Air Transport Association, global passenger traffic is expected to reach 52% of pre-crisis levels in 2023, and 88% in 2024.
Angola, which has a population of about 33 million, is one of the fastest-growing economies in Africa, with a projected growth rate of 3.2% in 2023, according to the World Bank. The country is rich in natural resources, such as oil, diamonds, gold and copper, and has a diverse landscape that includes rainforests, savannas, mountains and beaches.
The new airport in Luanda is expected to boost the country’s tourism potential and attract more visitors from around the world. The minister said the government was working on improving the visa regime and the security situation to make Angola more accessible and attractive for tourists.
“We are very optimistic about the future of Angola and the future of our airport,” he said. “We believe that this is a great opportunity for us and for our partners to create value and to contribute to the development of our country.”
Source: Bloomberg
