Investors Express Interest in Ghana’s Airport City II Project
Local and foreign investors are reported to have expressed interest in participating in the project within the Kotoka International Airport (KIA) enclave.
According to a news report posted on the aviationghana website, the investors have placed formal bids to partner with the Ghana Airports Company Limited (GACL) to develop the Airport City II project. The successful bidder will provide over US$100 million in unencumbered capital for the initial investment. The goal is to develop a high-end mixed-use commercial, lifestyle, and entertainment precinct. The proposed site is about 272 acres and is located within the KIA enclave. The airport city precinct is meant to fit into the general landscape infrastructure expansion program at the airport. The first and initial phase of the project involves developing a high-end site and services scheme to develop the precinct. The airport city is set to be completely serviced with quality infrastructure. This will enable the delivery of premium serviced plots for the various structured land uses. The service infrastructure will include power and water, telecommunications, landscaping, roads and associate drains, and security infrastructure. The next phase will include plot/land allocations to the individual investors. This will either be through a joint venture agreement with GACL or an outright lease for development in conformity with the approved Land-Use plan. The GACL issued an Expression of Interest (EoI) for the engagement of a Master / Anchor Developer(s) published in March. The EoI stated that successful bidder(s) would provide the required funds to construct the infrastructure for the Initial Phase. The EoI also required that successful bidder(s) be willing to develop some of the strategic properties in the enclave under any of the three main financing agreements. One of the financing agreements proposed in the EoI published is that the investor who will provide requisite funding for the infrastructure works to GACL will get an agreed size of land in return. Nonetheless, this piece of land will be subjected to adherence with the approved Master Development Plan and accompanying development controls. The other agreement option is for the investor to construct the required infrastructure at their own cost in return for an agreed size of land. This land will also be subject to adherence with the approved Master Development Plan and accompanying development controls. The last and third option is for the investor to construct the infrastructure and develop some of the strategic projects within the enclave. The investor will also provide the technical know-how, financial capability, the network to draw in the required anchor tenants, and the brands for the properties to be developed. The investor will then share in the proceeds of the whole project. Photo: Aerial view of Terminal 3 at Kotoka International Airport (Ghana Airports Twitter Handle | @gh_airports)