Curacao Airport Partners (CAP) DO WE REALLY MEAN BUSINESS? A Direct Investor’s Perspective on the Public Private Partnership Experience On Curacao
Agenda • Who we are; What we do; How we do it. • Airport programs over past 5 years • How we see our role as a Direct Investor & Government Partner • Past Challenges • Future Challenges --- More Critical • Moving Forward
Calculated Risks Let’s start with a fundamental premise: If If Cur uracao do does no not “win”, CAP cannot “win” Essentially goes for all of us here…not just CAP To win, you have to be willing to take calculated risks, but risks never the less Swing the bat, you can get a hit, or even a home run… BUT, you can also strike out! A quick personal “calculated risk” story
A Bold & Vis isionary ry Str trategy Create a platform for Decision to success – Curacao & privatize: CAP bold and visionary IF the Partnership Would optimize attitude, mindset and airport productivity agreement is and economic observed by both potential parties
Fundamentals of f th the CAP PPP Government (CAH) owns the airport and provides oversight of the DOMA Not Note: CAH is an objective, responsible and success-focused government partner CAP is the Private Airport Operator DOMA – 15 to go - CRI 30 30 yea year r DO RITICAL POINT Extension? Has CAP been a good partner? Has CAP demonstrated the right “attitude”, “mindset”… TBD
Concession Ownership Curaçao Airport Partners (CAP) is a consortium of private international investors: CCR (Br (Brazil) l) controls 80% of shares (Infrastructure management company) A-Port (a.o. Zurich Airport) controls 10% of shares (Global airport operational experts) Janssen De Jong controls 10% of shares (Infrastructure construction company)
Important Characteristics Im $$$ Financial Airport under CAP: Curacao (CAH) A successful Managerial Fro rom fin financial receives partnership that Operational los losses to 15 15%-30% could be a model standards fin financia ial gain ins annual income for other are re hig igh from total government assets re reve venues* *Generated by airport – based on passenger traffic
CAP’s Vision for CUR • Optimal com ompetitiv iveness • Encouraging de development an and d gro growth • Fai air r an and d equ equal l tr treatment of all users • Res especting the the in inves estments of the shareholders and the Government • Enforcing industry bes best prac practic ices
Critical Success Factors Operatio ional l Excell llence – Best Ops Platform Fin inancia ial l St Strength – Best Business Platform Contin inuous im improvement of the passenger experience Encouragin ing growth among existing users Promotin ing CUR and Curacao to new users
Our Business Environment 1 Very hi high gh priv private CAP’s private investors In Investment assume al all l fina final l risk risks Airli irlines can an rel relocate Airport is a fix fixed asse as sets – Airports are nati na tional l as asse set – cannot ‘fixed’ in place be relocated – CAP is is bo bound to Cur uracao
Our Business Environment 2 Ext xtensiv ive reg regula lation & Req equire rements for r sp spec ecific ic overs rsig ight from CAP in inves estments stipulated international and local in the DOMA Reg egula latory ry or Adv dvis isory ry Sa Safety, Oper perational l an and d entities Nav avig igational l in infra fra- stru tructure required by international regulators are al all l pa paid id by y CAP
Our Business Environment 3 CAP controls very little In In consu sultation with ith ai airlin rline us users rs Aeronautical fees (PFC) (who believe that a $1.00 increase in PFC will proposed by CAP pro destroy the competitive position of Curacao, but a $50 baggage , or $200 change fee” fee on the same passenger has no impact) … App ppro roved by a (When was the last time that an airline consulted with you, the user, regarding their Government proposed fare increases? ) Regulator (BTP) Non-Aeronautical fees are not regulated
Our Business Environment 4 Two critical factors Over which CAP has very that drive success: little or no control • Passenger Levels • Airlines: • Rates & Charges Passenger Capacity • Government: Rates & Charges A true Par artnersh ship between the Government and CAP is critical to ensure success … for CAP and and for Curacao
BUT … . . DOES CAP REALLY MEAN BUSINESS FOR CURACAO? Let’s take a Quick Look At Some Numbers
Fin inancial l & In Investment Overview August 2003 – De December 2018 USD USD USD USD 100M 70M 9M 9M Direct investment Payments Investments Investments 2016 to CAH CAP in 2015 CAP in 2016 USD USD USD USD 36M 10M 25M 11M Other investments Terminal Right attitude/ CAPEX to 2018 Expansion mindset? Per DOMA Actually Invested Other
Air irport Economic Im Impact KP KPMG EIS IS Stu Study 2016 220 1,870 5,760 CAP FTE CA TEs Employees by Airp irport Total l Airp irport rt Rela elated De Dec. . 2016 2016 Based Companie Ba ies Employment USD 58.3M 9% 6.5% Of f tot otal l In Income to Of f total l Cu Cura racao Empl ployment Govern rnment Govern rnment Inc Income
PROJECTS CAP HAS COMPLETED OVER THE PAST 5 YEARS? Let’s take a Quick Look
2015 improvements CAP continuously improves the airport infrastructure
2016 improvements: Immigration e-gates One of the first airports in the region to have automated passport control! Passport control made easy use our our new gates.
2016 improvements: new arrivals hall
2016 improvements: new car rentals counters
2016 improvements: new F&B options
2017 Projects: Parking System
Update Terminal Expansion Project is on track - planned to be completed in 4 th Qrt of 2018.
Terminal Expansion - The Key Facts A380 A3 Doubli Do ling th the e dep epar arture e Adding a gate for Investment ar area: : 2.5 million the la largest t pla lanes es in the of NAF 65 milli illion passenger p.a. world Adding a foo ood cour ourt to Faster proces esses: Adding the coolest the departure area more capacity & Mir irador in the region automated
Update Terminal Expansion
Update Terminal Expansion
Air-Conditioned & Expanded Check-in Hall - COMPLETED JULY 2014 Closed & air-conditioned Expanded & check- in machines added Investment of NAF 3.2 million
Improved Look & Feel Check-in Hall Project defines new design standards
Improved Look & Feel Check-in Hall - COMPLETED DECEMBER 2014 New floor and color scheme
A fresh & modern look for the toilets - COMPLETED MARCH 2015
Preparation of the baggage system for the future - COMPLETED Existing capacity doubled Investment of NAF 3.5 million
Je Jet Centre Curacao for pri rivate je jets - COMPLETED DECEMBER 2014 Separate terminal for private jets High convenience & privacy Investment of NAF 2.25 million
Jet Centre Curacao for private jets Separate high- end terminal for private jets Same services as normal terminal: • immigration • customs • security check • waiting hall • shower • duty free
Jet Centre Curacao for private jets
Refurbishment of Runway & Taxiway - COMPLETED Investment of NAF 10.5 million so far....
Mirador for public use (Rooseveltweg) - COMPLETED
Recent Improvements - BEFORE Upgrade Departure Screening Point Previous setup: no air- conditioning for queuing passengers concrete floor
Recent Improvements - AFTER Upgrade Departure Screening Point 3 rd line (business pax) steel tables air-conditioned waiting area new floor
Commercial Plaza
Commercial Plaza
Commercial Plaza / Boulevard
Commercial Plaza / Boulevard
Improved Look & Feel Departure Hall
Improved Look & Feel Departure Hall
New Arrivals Hall & Rental Car Counters - BEFORE Goals: • provide a closed arrivals hall • refurbish the rental car counters
New Arrivals Hall & Rental Car Counters
New Arrivals Hall & Rental Car Counters
Airport Expansion (NAF 45 Million) Curacao Airport 2018 2a) west expansion 2b) additional gate 2c) mirador on roof 2d) arrival corridor 3) center expansion 1c) new arrivals hall 1b) shopping plaza The Terminal Expansion consists of 3 phases: 1a) expanded check-in hall 1.preparation projects 1. 2014-2015 2.west expansion 2. 2015-2016 3.center expansion 3. 2016-2018
Curacao Airport 2025?
New Parking & Central Building Curacao Airport 2025? It’s up to us!
WHY DOES TH THE CAP PPP WORK?
Critical Ele lements in in a PPP A Calc lcula lated Risk isk – on both sides A lon long-term contract A publi lic client A priv ivate company/consortium operator A critical nati tional l infrastructure ass sset Requires a balance of exp xpertis ise, cr creativ ivit ity, , money…& political realities
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