A consortium of Mitsubishi, Jalux and Myanmar's SPA Project Management has been selected by the Ministry of Transport Department of Civil Aviation of Myanmar to upgrade and operate Mandalay International Airport.
The 'rights of first refusal' contract includes operation of the airport for 30 years following its rehabilitation and improvement.
The project is set to transformation of Mandalay International Airport to an airfreight logistics hub.
Serving as a domestic aviation hub, with routes connecting 12 major cities across the country, the airport is witnessing a 20% annual growth, and served around 80,000 international and 500,000 domestic passengers in 2012.
The new public-private partnership (PPP) aims to enable Mandalay Airport to better serve the future projected passenger growth, which is expected with growth in industrial activities and tourism.
A Mitsubishi-Jalux consortium was selected from seven shortlisted firms in the final round.
SPA Project Management, a subsidiary of Yoma Strategic Holdings, has a 5% interest in the consortium, with each party having an equity contribution of $3.38m.
The consortium will be awarded the contract after the finalisation of the terms, following negotiation with Myanmar Airport authorities.
If the pending talks with the Government of Myanmar turn into a concession, the consortium will work with the DCA, which is the existing operator of the airport, to set up a new firm.
The newly established company will be responsible for the management of the airport.
Commissioned in September 2000, the airport incorporates systems including VHF and HF SSB transmitters and receivers, a voice communication control system, an automatic terminal information system (ATIS), in addition to an aeronautical fixed telecommunications network.
The airport also has a 14,000ft-long and 200ft-wide concrete runway, which can accommodate any size of commercial aircraft, while the parking area has the capacity to accommodate 700 cars.
Image: The project involves transformation of Myanmar's Mandalay International Airport to an airfreight logistics hub. Photo: courtesy of Mitsubishi Corporation.