Osaka and Kansai airports privatisation PPP

Overview:

• Osaka and Kansai airports privatisation PPP
• Japan has launched a concession for the airport rights in the Osaka region.
• The concessionaire company, formed by the winning consortium made up of ORIX Corporation and Vinci Airports, signed a 44-year concession agreement for the operation of the two airports - Kansai and Osaka (Itami) International.
• The transaction is likely to serve as a template for future privatisations planned in the Japan infrastructure sector.
• Over the concession term, the company will pay ¥2.2 trillion ($18 billion) to NKIAC - New Kansai International Airport Company, a wholly owned subsidiary of the Government of Japan.
• Financing was provided by Mizuho Bank and Sumitomo Mitsui Banking Corporation with mezzanine financing provided by Private Finance Initiative Promotion Corporation of Japan.
• This project was procured under the recently established PPP legal framework and is Japan’s largest PPP to date.

Adam Majeed - Regional Editor