Changi Airport: Yongnam - CAPE - JGC Consortium submits proposal for Hanthawaddy International Airpo

The consortium comprising Yongnam Holdings Limited ("Yongnam"), Changi Airport Planners and Engineers ("CAPE") and JGC Corporation ("JGC"), has submitted a proposal to the Myanmar Department of Civil Aviation ("DCA") on the Request for Proposal ("RFP") dated 8 February 2013, for the right to design, construct, operate and maintain Hanthawaddy International Airport ("HIA") and its facilities on the basis of a public-private partnership agreement for a 30-year concession period, having achieved pre-qualification prior in February 2013.

This is the consortium's second proposal following an earlier submission in April 2013 for the right to design, build, operate and transfer Yangon International Airport and its facilities, also for a 30-year concession period.

The three companies are market leaders in their respective industries and together, bring a unique combination of expertise and experience to the project. Listed on the Singapore Stock Exchange, Yongnam is a multidisciplinary engineering and construction group with a strong track record of infrastructural projects both in Singapore and overseas. In the airport sector, Yongnam's experience includes Singapore Changi Airport, Bangkok Suvarnabhumi International Airport, Brunei International Airport, Kuala Lumpur International Airport, New Delhi International Airport and Mumbai International Airport.

CAPE, a wholly-owned subsidiary of Changi Airports International ("CAI"), has a stellar track record in the area of airport master planning, design and project management. CAPE has consulted in the development of 17 airports all over the world, including airports in Africa, China, the Middle East, India, Russia, Europe, Brazil and Southeast Asia. CAI and its parent company, Changi Airport Group ("CAG"), have a proven track record in providing innovative and customer-friendly airport experiences as a hallmark of operational and service excellence. Testament to its continuous drive for excellence, Singapore Changi Airport is the world's most awarded airport, having been conferred more than 420 accolades since its inception. More recently, the airport was ranked first by Skytrax for the fourth time, receiving the World's Best Airport Award for 2013.

JGC is a leading global engineering contractor listed on the Tokyo Stock Exchange. JGC has a strong track record in executing over 20,000 engineering projects in over 70 countries. JGC has developed proprietary engineering technology and displayed unsurpassed project management capabilities in the field of petroleum refining and gas processing, LNG, petrochemicals and other hydrocarbons, as well as those involving non-ferrous metals, nuclear power, pharmaceuticals, hospitals, laboratories and numerous other sectors. In addition to the EPC business, JGC has also been investing in projects on a BOT basis, such as independent power production and seawater desalination.

The RFP requires the construction of an international passenger terminal building with an annual capacity for 12 million passengers, airfield facilities construction works on the runway, apron and taxiways. These include a runway of 3,600m capable of accommodating aircraft like the B747 and A340, a full parallel support taxiway, 25 contact aircraft stands and 17 remote aircraft stands. Also included in the RFP is the installation of an advance baggage handling system (complete with in-line security screening), and the provision of other ancillary airport support systems such as underground fuel hydrant installation, sewage treatment plant, car parking facilities, utility tunnel and emergency power station.

The consortium believes that it has submitted a strong and competitive proposal. Based on the theme of "Continuity and Transformation", its design of the new international terminal building incorporates well-known Myanmar architectural features, while giving it a contemporary look and feel.

In addition to fulfilling the requirements of the physical infrastructure, the consortium is committed to set and provide a high standard of service at HIA, by implementing effective operational and commercial systems and processes, based on the strong belief that human capital development is pivotal to the establishment of HIA as the premier international gateway to Myanmar. HIA will be the fourth international airport in Myanmar, after that of Yangon, Mandalay and Nay Pyi Taw, and is located approximately 10 km west of the Bago township and 80 km from Yangon.

The consortium has plans to set up an aviation training academy that will provide training and development to airport personnel in Myanmar, raising customer service standards and enhancing operational effectiveness. The consortium believes that this initiative will raise productivity standards, expose employees to new technology and management methods, as well as enhance the professional development of individual airport employees in a structured and sustainable manner.

A joint venture will be formed to deliver the requirements under the concession agreement, should the consortium be successful in the HIA project.