Three bidders for Sendai airport privatization

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Three bidders for Sendai airport privatization Three of the four shortlisted teams are in the final round of the bidding process for the rights to operate and improve facilities at Sendai Airport, Japan's 10th busiest airport.

The three teams are:

  • Mitsubishi Estate Co Ltd and ANA Holdings Inc
  • Maeda Corp and Tokyu Corp
  • Aeon Co and Kumagai Gumi Co

The other shortlisted team, composed of Mitsubishi Corp and Rakuten Inc, did not submit a second-round bid.

The government of Japan aims to obtain about YEN5.7 billion (US$45.8 million) through the deal for rights to operate the airport.

The concession includes the operation of the airport's runways and hangar facilities for up to 65 years. The initial duration will be 30 years and there will be an option extension due to force majeure.

The tender process is governed by Japan's Act on the Promotion of Private Finance Initiative (Act No.117 of 1999) and the Act on Operation of National Airports Utilizing Skills of the Private Sector (Act No.67 of 2013). Japan's Ministry of Land, Infrastructure, Transport and Tourism will be the grantor of the contract.

Sendai Airport is an airport located in Natori, Miyagi, 13.6 km (8.5 mi) southeast of Sendai Station. On 11 March 2011, the airport was first damaged by the 2011 TÅ?hoku earthquake and then badly flooded by the subsequent tsunami. In addition to submerging the tarmac, taxiways and runway, the floodwaters reached up to parts of the 2nd level of the passenger terminal, rendering electrical equipment, transformers and safety equipment inoperable.

See tender documents for Sendai Airport contract:

http://www.mlit.go.jp/en/report/press/koku05_hh_000001.html

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