THE government invites the private sector to develop Komodo Airport in Labuan Bajo, East Nusa Tenggara, so that it is hoped that it can further improve the quality of services and increasingly benefit air transport service users.

As is known, the Ministry of Transportation has announced the CAS Consortium as the winner of the Komodo Airport Development Project auction in Labuan Bajo under the Government and Business Entity scheme in December 2019.

According to the Minister of Transportation, Budi Karya said the President instructed me to create a climate of competition between the private sector and State-Owned Enterprises. We hope that the Cardig and Changi Consortiums can perform as well or better than State-Owned Enterprises. We want this to be managed professionally.

“The signing of the Komodo Airport Development MoU with the consortium of auction winners will be held on February 7, 2020, and I will immediately report it to President Joko Widodo. Komodo Airport will be the gateway of Labuan Bajo, which is one of the five super priority tourist destinations or five New Bali that is being prepared by the Government, “he said.

He added, for information, currently the runway length of the Komodo Airport 2,250 meters will be extended to 2,750 meters, an apron expansion of 20,200 square meters, expansion of the domestic terminal area of ​​6,500 square meters, construction of an international terminal covering 5,538 square meters, construction of a cargo terminal area of ​​2,860 square meters , as well as the construction of several other supporting facilities.

The CAS Consortium consists of PT. Cardig Aero Service (CAS), Changi Airports International Pte Ltd. (CAI) and Changi Airports MENA Pte Ltd will manage Komodo Airport with the target of increasing the number of passengers annually to 4,000,000 passengers per year and cargo by 3,500 tons in 2044 so as to further enhance national and international connectivity.

The collaboration is designed to design, build and finance the construction of land, air and support facilities. It also operates the Komodo-Labuan Bajo Airport during the 25-year collaboration period, and maintains the entire infrastructure and facilities of the Komodo-Labuan Bajo Airport during the cooperation period.

When the cooperation period ends, the Business Entity is obliged to surrender all infrastructure and facilities of the Komodo-Labuan Bajo Airport to the Person in Charge of the Cooperation Project in this case the Director General of Civil Aviation.

The investment value for managing the Komodo-Labuan Bajo Airport is IDR1.20 trillion and the estimated total value of operational costs for 25 years is IDR5.73 trillion.

Furthermore, the manager of Komodo Airport has an obligation to pay an upfront Concession of IDR5,000,000,000 and an Annual Concession of Revenue from the Komodo Airport-Labuan Bajo of 2.5 percent with a gradual payment twice each year which will then increase annually with an increase of 5 percent of the previous year’s concession fee, and Clawback by 50 percent. [antaranews/photospecial]