Case Study

Name: Nigerian Bureau of Private Enterprise and International Finance Corporation Date: 2005 to present Project: Airport System Planning, Financial Feasibility, and Transaction Structuring

Summary: IMG was retained as a technical and financial consultant by the Bureau of Private Enterprise of Nigeria (BPE) and the International Finance Corporation (IFC), a World Bank subsidiary, to assist in determining alternative structures for bringing private sector participation into the development, modernization and operation of the airports in Nigeria. The project also included the structuring, promotion, bidding and award of the concession of the Abuja International Airport to an international airport operations and investment consortium.

Issue: The Federal Government of Nigeria (FGN) has embarked on a process of aviation sector reform and has made the decision to introduce private sector participation (PSP) into the Nigerian airport system. IMG and the IFC have been retained by the Government as the exclusive Lead Advisor for the implementation of PSP for the Nigerian airport system.  IMG and IFC will assist the FGN implement the PSP transaction for the Nnamdi Azikiwe International Airport in Abuja (ABV) and recommend alternatives for PSP for the other airports in the system.

Solution: As lead technical and financial advisor, IMG recommended to the FGN and IFC alternative structures for PSP in the airport sector including the concession of the Nnamdi Azikiwe International Airport in Abuja (ABV). The recommended PSP structure for ABV was specifically tailored to the realities and potentials of the airport considering the technical, financial, labor, environmental and social due diligence issues of the analysis and studies performed by IMG. Additionally IMG recommended innovative alternative PSP solutions for the development of all other airports in the Nigerian Airport system.

Value Created: Specific tasks undertaken by IMG include technical, financial, labor, environmental and social due diligence and feasibility studies of two domestic airports and the four principal international airports in Nigeria. Additional work includes aviation market analysis, air traffic forecasts, facility planning, alternative private sector participation structures as well as a benchmark study of the Nigerian aviation sector with six other countries in the region. IMG also assisted the IFC in the preparation of promotional material and bidding documents for the concession of the Abuja Airport, the identification of potential interested parties and in the selection of a preferred bidder.