Adani Submits Proposal to Kenya Govt for the Country's Biggest Airport

Gautam Adani's portfolio firm Adani Airport Holdings Ltd. has submitted a proposal to Kenya's government for investing in its main airfield, the Jomo Kenyatta International Airport (JKIA) in Nairobi, reported Bloomberg.

The proposal, as per the statement by KAA acting Managing Director Henry Ogoye, includes plans to build a new passenger terminal, a second runway, and refurbish existing facilities. The investment required is substantial, estimated at $1.85 billion, with the first five years of the proposed upgrade project requiring around $830 million.

However, the proposal is yet to undergo technical, financial, and legal reviews to comply with the nation's public-private partnerships laws. Neighboring Ethiopia, which operates Africa's largest airplane fleet, has also been expanding its aviation infrastructure in recent years, challenging Kenya's regional aviation hub status.

To recall, in early of last month, Adani Group (represented by Adani Ports and Special Economic Zone Ltd. joint venture) already entered Africa by acquiring a 95% stake in a container terminal company at the Port of Dar es Salaam in Tanzania. According to an exchange filing, Adani collaborated with Abu Dhabi-based logistics firm AD Ports Group and East Harbour Terminals Ltd. to acquire Tanzania International Container Terminal Services Ltd. for $39.5 million

Jomo Kenyatta International Airport (JKIA) in Nairobi faces several challenges that highlight the urgent need for infrastructural IMPROVEMENTS. The facilities at JKIA date back several decades, and many components require modernization to meet current standards. Over the past ten years, JKIA has suffered from insufficient facility and infrastructure capacity upgrades. Even temporary interventions have become permanent solutions, contributing to the current state of affairs and service disruptions.

Recently, videos emerged showing leaking roofs at JKIA, emphasizing the need for urgent repairs and maintenance. In April 2023, JKIA experienced an engine failure during takeoff of a Singapore Airlines Cargo plane, leading to an eight-hour shutdown. A second runway could have prevented such disruptions.

Notably, a previously planned Greenfield terminal project faced contract and litigation issues, resulting in delays.

Despite these challenges, there is optimism. Adani Airport Holdings Limited (AAHL) has proposed a significant investment to modernize JKIA, addressing infrastructure deficiencies and paving the way for growth and enhanced competitiveness in the region.

JKIA is located in Embakasi, a suburb of Nairobi, is Kenya's largest and busiest airport. It serves as the main gateway to the country, connecting Kenya to various international destinations.

In 2023, the number of passengers at JKIA surged to 8.2 million, accounting for 67.3% of all passengers in Kenya. JKIA's significance as an aviation center sets the pace for other airports in the region, and it continues to play a vital role in East and Central Africa's air travel landscape.

Adani Airport Holdings Limited (AAHL) took flight in 2019 with a vision to transform airport experiences. As a subsidiary of Adani Enterprises Ltd, AAHL manages seven top-tier airports in India: Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram.

AAHL's reach extends further with the Navi Mumbai International Airport (NMIAL), ushering in a new era for India's aviation sector¹². AAHL's commitment lies in curating exceptional journeys, from personalized services to innovative facilities, making airports gateways of wonder. They prioritize route development, retail experiences, digital transformation, elevated service quality, and sustainability initiatives.
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