Airports Development Limited (continued from last week)

Automation of the Car Park at KIA
This reform area was initiated to optimize car park fee collection and enhance safety and security of vehicles at Kamuzu International Airport. The reform was fully implemented effective 18th November, 2015 and resulted to the construction of a toll gate at KIA in 2016.

Following the reform, ADL’s revenue has greatly increased. During the 2015/16, 2016/17 and 2017/18 Financial Years (FYs), total revenue amounting MK 9,365,073.54, MK 18,624,163.01 and MK 20,221,803.52 was collected respectively.

Installation of Baggage Reconciliation System (BARS) at KIA and Chileka International Airport (CIA)
BARS is an approach aimed at tracking passengers’ baggage in airports and the reform was initiated in order to enhance safety and security, improve revenue through concession agreements and improve service delivery of the country’s airports. System specifications for the reform were developed and a call for Expressions of Interests (EOIs) was advertised. The submitted EOIs were evaluated and detailed proposals were requested from the bidders.

Passenger Service Fees
This is a fee levied to meet expenditure on airport security and passenger facilities at airports and is charged as part of passenger fare of air travel.

This reform is being undertaken by ADL to help raise revenue that will be used to develop the country’s airports by constructing and improving their infrastructure, equipment and other services.

A proposal on the reform was submitted to the Ministry of Transport and Public Works and is awaiting government decision.

Seek Strategic Partner in Operating Duty Free Shops
This reform was initiated to help improve revenue collection through concession agreements, improve the standards of the duty free shops and their service delivery. The reform is also expected to promote tourism through the products sold to international customers.

Concession agreements were awarded to successful bidders and permits offered to operate the duty free shops. Strategic Partners for operating Diplomatic Duty Free shops were also identified and offered contracts however this area awaits government decision following letters that were written to Malawi Revenue Authority and Ministry of Finance.

Outsource Aviation Security to a Private Operator
This reform was initiated to help foster safety and security in the country’s airports. A letter was written to the Ministry of Transport and Public Works regarding the reform and is awaiting approval after which ADL will proceed with the procurement of security services from private companies.

Review of Ownership of Strategic Properties/Facilities at the Airport
The facilities include: A fuel facility, Skynet, MPICO and MANICA properties.This reform is being undertaken to ensure that ADL has full control of the land and buildings around its airports which will help improve its revenue collection through concession agreements that will be secured. The reform will also help improve the safety and security of the airports.

A research was conducted on what other Airport Companies have done in other countries regarding similar situations. A review of the title deeds/leases of the properties was done and consultations with external lawyers were also conducted and processes are underway on how to acquire the properties.

Looking at the reforms initiated and progress made, Airports Development Limited is doing a commendable job in undertaking its reforms.

Feedback:opcreforms@gmail.com