Adani Group submits investment proposal for Nairobi airport upgradation
Currently, AAHL manages seven airports in India and is also developing the Navi Mumbai airport. | Photographer: Prashanth Vishwanathan/Bloomberg
Kenya Airports Authority (KAA) on Wednesday said it has received an investment proposal from the Adani Group for the upgradation of the airport in Nairobi.
The investment proposal under the public-private partnership has been submitted by Adani Airport Holdings Ltd (AAHL) for Nairobi’s Jomo Kenyatta International Airport (JKIA).
Currently, AAHL manages seven airports in India and is also developing the Navi Mumbai airport.
In a statement, JKIA Managing Director and Chief Executive Officer Henry Ogoye said the proposal came following the Kenyan government approving a medium-term investment plan for the upgradation of the passenger terminal building, runway, taxiway and apron at the Nairobi airport.
“Kenya Airports Authority (KAA) received an investment proposal under the Public Private Partnerships Act 2021 from the Adani Airport Holdings Limited, a key airport operator, to invest in a new passenger terminal building, second runway and refurbishment of the existing facilities at JKIA,” Ogoye said in the statement posted on X.
JKIA was built in 1978 and is a strategic national asset. “Its ageing infrastructure is a threat to our regional competitiveness,” he said.
According to him, the attendant investment requirement is significant and cannot be funded with the prevailing fiscal constraints without recourse to private funding.
AAHL’s proposal will be subjected to technical, financial and legal reviews alongside requisite due processes in compliance with the Public Private Partnerships Act 2021, he said.
As per the statement, the project agreement will be followed by stakeholder engagement besides the approval from the National Treasury and the Attorney General clearance as well as the Cabinet approval.
“I wish to assure our staff that no jobs are at risk. I also wish to assure the airport. business community and operators that the expanded facility will create additional business opportunities and attendant benefits,” Ogoye said.
AAHL, part of the diversified Adani Group, has plans to expand its airport operations.
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First Published: Jul 25 2024 | 12:35 AM IST