REQUEST FOR QUALIFICATION (RFQ) PACKAGE FOR THE DEVELOPMENT OF AN
AEROTROPOLIS (ABUJA CITY)
Background:
The Federal Ministry Aviation (“FMA” or “the Ministry”) aims to develop a 21st century multimodal national transportation network for the nation, a component of which also involves the repositioning of the aviation sector for enhanced productivity.
Development Objectives: The development concept involves the developing of an Aerotropolis (“Airport City” or the “Project”) in Nigeria to enhance commercial activity, within and around the selected airport. The Project shall stimulate much needed competitiveness through better air connectivity, improved multimodal airport surface transportation access, and coordinated aviation-linked commercial development, complemented with good urban planning. The Aerotropolis concept seeks to key into the robust growth of Nigeria’s international air travel and cargo market, by transforming the selected international airport into regional hub of bustling commercial and industrial activity, by aggregating aviation facilities, services, and other resources within a that location such that the ecosystem leverages on economies of scale and scope, through which other positive externalities can be harnessed for maximum economic benefit. An Aerotropolis is an urban infrastructure complex that consists of a multimodal airport-based commercial core (Airport City) and, outlying corridors and clusters of aviation-linked businesses and associated mixed use commercial/residential developments that feed off each other and their accessibility to the airport. The competitive advantages of the Aerotropolis is such that it offers businesses and people located near or within the Aerotropolis good access to the airport with speedy connectivity to their suppliers, customers, and enterprise partners, nationally and worldwide. An Aerotropolis contains the full set of cargo, logistics, commercial, and urban services that support airlines, air travellers, and aviation-linked businesses to produce a wave of transit-oriented development that anchors airport-centric commercial development and drive it throughout the metropolitan region.
FMA Project Concession:
The development of an Aerotropolis via a Public Private Partnership (“PPP”) arrangement on a Design, Build, Finance, Operate, Maintain and Transfer (DBFOMT) Concession, with private developer undertaking the design, construction, and financing obligations, in consideration of the project revenues to be earned from rental income and property leases, utility and management fees and so on). General Obligations of Concessionaire:
✓ Detail Design of the Airport City in accordance to the technical requirements
✓ Build the Airport City in accordance to the technical requirements and project timeline ✓ Finance the Airport City with debt & equity ✓ Operate the Airport City in accordance to international standards and agreed performance standards ✓ Maintain the Airport City to ensure operational performance ✓ Transfer back the fixed assets at the end of the concession term
Lead Member: A Member of a Consortium holding or intending to hold at least 30% interest in the Consortium as well as have management control of the Project.
O&M: Operation and maintenance of high-rise, mixed-use real estate assets.
Project Site: The Project will be sited on a minimum of 3,500 hectares of land around the Nnamdi Azikiwe International Airport.
Principal Project Agreements:
• Concession Agreement • Financing Agreements
Financing: Shareholders of the Project Vehicle will provide equity financing for the Project. Additional capital requirements is expected to be raised from debt financing sources.
Construction Commencement Date:
Construction will commence in 2023 upon execution of the Concession Agreement.
Commencement of operations: Within one (1) to four (4) years from the Construction Commencement Date. Eligibility: Single entity or Consortium Requirements for Consortium: ✓ Letter of Intent ✓ Power of Attorney duly signed by parties granting Lead Member powers to submit the bid and enter into negotiations ✓ Consortium Agreement highlighting the proposed shareholding of the Consortium members ✓ Consortium must have a Lead Member (holding at least 10% interest in the Consortium as well as have management control of the Project) and Exclusive Members (holding at least 10% interest in the Consortium). Where a firm is a Member of a Consortium or a subcontractor on the Application, provided that the firm is not the Lead Member of the Consortium, such a firm is permitted to participate as a member of other Consortiums in the same process.
Exclusion Criteria: (a) The Applicant must not be in a state of bankruptcy or liquidation; (b) The Applicant must not be subject to a bankruptcy application; (c) The Applicant has not been found guilty of an offence which raises doubts about the professional integrity of the Applicant, its shareholders, or member(s); (d) The Applicant has not committed a grave error in the performance of its profession; (e) The Applicant has met its obligations with regard to the payment of social security contributions or taxes, in accordance with the legal requirements in the country in which it is established; (f) The Applicant has not been guilty of making false statements in the provision of information, including statements made for the purpose of an application and the information submitted on the basis thereof. (g) The Applicant is not Nigerian Government owned or controlled (whether wholly or partly); (h) In the case of a Consortium, all Consortium Members have applied only once and are not Applicants in their own right or Consortium Member of another Applicant;
Conflict of Interest: (a) such Applicant has the same legal representative for purposes of this Application as any other Applicant; or (b) such Applicant, or any officer thereof has a relationship with another Applicant, or any officer thereof, directly or through common third party/ parties, that puts either or both of them in a position to have access to each other’s information about, or to influence the Application of either or each other; or (c) such Applicant, or any officer thereof has participated as a consultant to the PDT in the preparation of any documents, design, or technical specifications of the Project; or (d) the Applicant engages any adviser that has previously advised the Sponsors or any of their agencies in any manner in relation to the Project.
Technical Minimum Criteria
a. Undertaken a leading role in the development, operations and management of urban renewal and development/industrial park/mixed-use real estate/district development projects and facilities, with capital expenditure programmes in excess of US$50million (or Naira equivalent). Similar Aerotropolis linked projects, is an added advantage; b. Participated in the development and financing of district development/industrial park/mixed use real estate developments in any verifiable location worldwide, for which the Applicant (or members of the Consortium) played a significant role such as Promoter, Main contractor, Core Investor and so on; c. Evidence of a track record in the provision of facility management services for large-scale real estate development, within the past five (5) years, with an aggregate portfolio value in excess of US$100m (or Naira equivalent).
To demonstrate technical capacity and experience in the development/financing/and management of
urban development and high-end, mixed-use real estate developments, the Applicant shall have, over the past ten (10) financial years preceding the deadline for submission of the Application: In case of a Consortium, the combined technical capacity of the members should satisfy the above conditions of eligibility. In case the Applicant is not a Consortium, it shall be eligible only if it has equivalent experience of its own.
Financial Minimum Criteria:
The Applicant shall provide: (i) evidence that it is in a good financial position at the close of the preceding financial year; (ii) evidence of an asset base of up to NGN5billion (shall consider the combined assets where applicant is a Consortium) and (iii) a letter of financial support from a credible financial institution that supports its ability to raise funding for the Project of up to NGN35billion (or USD equivalent). In case of a Consortium, the member(s) nominated to be the financier of the Project, should satisfy the above conditions of eligibility. Alternatively, the Lead Consortium and the Exclusive Members shall provide evidence of good financial standing and provide a letter of financial support from a credible financial institution in supports of the estimated capital expenditure programme as stated above.
