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26 companies in talks for $700 million Lombok airport overhaul

State-owned airport operator Angkasa Pura I has announced that 26 foreign and local companies have passed the prequalification stage as they seek to join the overhaul and operation of Lombok International Airport.

Mardika Parama (The Jakarta Post)
Jakarta
Tue, October 6, 2020

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26 companies in talks for $700 million Lombok airport overhaul Lombok International Airport (shutterstock/-)

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tate-owned airport operator Angkasa Pura (AP) I announced on Monday that 26 foreign and local companies had passed the prequalification stage as they seek to join the overhaul and operation of Lombok International Airport.

The selected company would devise and implement the airport’s design, build, finance, operate and transfer (DBFOT) process with a 30-year concession period. The project’s value is estimated at Rp 10.3 trillion (nearly US$700 million) and will adopt a usage fee scheme to return the investment.

“We highly appreciate the enthusiasm of all 26 strategic partner candidate, who are among the world’s best airport operators and Indonesia’s best infrastructure companies. All of them have a commitment to work together to develop Lombok International Airport,” AP I president director Faik Fahmi said in a statement on Monday.

The foreign companies that passed the prequalification process include Royal Schipol Group from the Netherlands, South Korea’s Incheon Airport, Singapore’s Changi Airport, Malaysia Airports Holdings Berhad, German’s Munich Airport, France’s Vinci Airports and China Construction.

Meanwhile, local companies that passed the same stage are state-owned construction firms Adhi Karya and Waskita Karya as well as privately owned Astra Infra.

Lombok International Airport is undergoing a massive expansion to double its passenger capacity from 3.5 million to 7 million. The airport’s runway is also being expanded from 2,750 meters to 3,300 m, allowing wide-body aircraft such as the Boeing 747-400 to land.

Other infrastructure, such as aircraft parking space and aprons, are also being refurbished to increase the airport’s capacity.

 process, which is a detailed talk with AP I regarding their project proposals. The prequalification’s final result is scheduled to be announced on Jan. 29, according to the press release from AP I.aanwijzingThe companies are currently in the so-called

The Mandalika Special Economic Zone (SEZ) on Lombok Island is listed as one of the government’s five super-priority destinations, in a program aimed to make tourism the new driver of Indonesia’s economic growth.

The island is set to host the prestigious MotoGP event after securing a deal with Dorna Sports, the MotoGP rights holder, for a race slot in the 2021 season. The deal was sealed in January 2019 by the Indonesia Tourism Development Corporation (ITDC), the state-owned company responsible for developing the Mandalika SEZ.

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