Projects are on track
Summa Group, an international construction contractor diversifying into the long-term sustainable business of operating airports and running hospitality facilities, with a well-established footprint in Sub-Saharan Africa, has started 2019 with a project pipeline of cEUR1.7bn. In Q1, the company has primarily been focused on Diori Hamani International Airport in Niamey, Niger – the project has reached c70% completion. Once it reaches 75% completion, Summa will take over operational management of the airport, under a 30-year concession agreement.
The modernisation of Diori Hamani International Airport, Summa’s first full-cycle build-operate-transfer project, is a EUR154mn investment, funded through a combination of debt (EUR100mn) and equity (EUR54mn). Under the terms of the concession agreement, Summa is entitled to a EUR52 infrastructure development charge per departing international passenger, collected directly from the International Air Transport Association (IATA) – the trade association for the world’s airlines. The project is at an advanced stage of construction, with new passenger and cargo terminals, passenger boarding bridges, a presidential pavilion, new taxiway and airport utility centre all approaching completion (Figures 1-6 on page 2).
Niamey Hotel is on track to be completed in June 2019. International hotel brands are yet to roll out their franchises in Niger. Summa’s EUR38mn investment in a 191-room hotel is an opportunity to be at the frontline of the new entrants and a valuable addition to modernised airport infrastructure in the region. Once completed, the hotel will add to the company’s revenue-generating properties, increasing income from its property management and hospitality business.
Other projects. In Moldova, where Summa already has a portfolio of income-generating real estate investments, the company has continued to work on the MallDova Office Plaza and Hotel, which has reached c55% completion, and Chisinau Arena, where c15% of works have been completed (as of end-February). In Rwanda, Summa has commenced construction of a sports facility: a 10,000-seater indoor stadium commissioned by the Rwanda Housing Authority and Ministry of Sports and Culture. The Khartoum International Airport project, meanwhile, which accounts for c42% of Summa’s project pipeline, has been on hold since December 2018, when the continuing political protests started in Sudan.
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