Saudi Arabia tenders 10-year contract

By Administrator |

The General Authority of Civil Aviation (G.A.C.A.) of Saudi Arabia is to tender a single 10-year duty free contract for the Kingdom?s three airports of Jeddah, Riyadh and Dammam.

The G.A.C.A is inviting companies to apply for Pre-Qualification with proposals to establish, operate and manage new duty free at all three airports.
The financial basis of the duty free concession contract will be a percentage of sales or a minimum annual guarantee (MAG), whichever is the greater.
The successful company will be responsible for financing, building and fitting out five duty free shops at the three international airports, with two shops planned at both Jeddah and Riyadh and a single shop located at Dammam.
The winner will also be responsible for fitting out feeder stores/warehouses adjacent to, or beneath each duty free shop. It will also be required to operate three (3) landside duty free bonded warehouses ? one at each airport.
International companies are also being asked to form partnerships with pre-qualified Saudi companies to meet the request for proposals criteria.
G.A.C.A says it will inform companies that meet the RFP criteria by late June and it hopes to sign a contract with the winner by mid-October 2006.

Full details of Saudi Arabian duty free bid pre-qualification:

As reported earlier, the General Authority of Civil Aviation (G.A.C.A.) of Saudi Arabia and Concession Planning International (C.P.I.) have produced a Request for Pre-qualification for the establishment, operation and management of duty free shops at the three international airports of the Kingdom of Saudi Arabia.
The Business has obtained a copy and its contents (excluding response forms) are reproduced in full here:

The Kingdom of Saudi Arabia
The Kingdom of Saudi Arabia covers an area of 1.96m square kilometres and has a population of 26.4m. It has a young population, with 38% of people aged up to 14 years and only 2.4% above 65 years.
It is the world?s largest oil exporter and has the largest economy in the Middle East.

The Kingdom?s Airports
The Kingdom has a total of 26 airports, all controlled by the General Authority of Civil Aviation (G.A.C.A.). In 2005, the Kingdom?s airports handled a total of 36.61m passengers.
The three main International airports are: JEDDAH (King Abdulaziz International Airport ? KAIA); RIYADH (King Khaled International Airport ? KKIA); and DAMMAM (King Fahd International Airport ? KFIA).

Overview of Traffic
Total International traffic (excluding Hajj traffic) to and from the Kingdom of Saudi Arabia in 2005 was 12.5m.
King Abdulaziz International Airport has two International terminals: The North Terminal, handling non-Saudi international airlines. This terminal handled a total of 4.44m international (arriving and departing) passengers in 2005.
The South Terminal, the Saudi Airlines terminal, (which handles both domestic and international traffic). In 2005, it handled a total of 2.89m international (arriving and departing) passengers.
The Hajj Terminal at Jeddah airport also handles international traffic, but this terminal is NOT included in this pre-qualification.
The main country destinations are: Egypt, Pakistan, Iran, India, U.A.E., Sudan, Indonesia, Bangladesh and the UK.

King Khaled International Airport has three terminals, two of which handle international traffic: Terminal 1. This terminal (handling non-Saudi international airlines) handled a total of 1.81m international (arriving and departing) passengers in 2005.
Terminal 2. This terminal (Saudi Airlines) handled a total of 2.17m international (arriving and departing) passengers in 2005.Terminal 3. This is a domestic terminal.
The main country destinations are: India, U.A.E., Egypt, Pakistan, Bangladesh, Indonesia, Sri Lanka and Lebanon.

King Fahd International Airport has one terminal, handling both domestic and international passengers. In 2005, it handled a total of 1.21m international (arriving and departing) passengers.
The main country destinations are: India, U.A.E., Egypt, Pakistan, Qatar, Bangladesh and Sri Lanka.

The Opportunity
Royal Approval has been given to G.A.C.A. for the establishment, for the first time of departure duty free shops in the Kingdom?s three International airports.
G.A.C.A. invites companies to apply for Pre-Qualification in putting forward proposals to establish, operate and manage new duty free shops which will be introduced in the international passenger departure areas at the Kingdom?s three international airports.
The duty free contract will be a single contract for all three international airports and will be for a period of 10 years.The financial basis of the duty free concession contract will be a percentage of sales or a minimum annual guarantee (MAG), whichever is the greater.
The successful company will be responsible for financing and building (and fitting out) five duty free shops at the three international airports: 2 in Jeddah, 2 in Riyadh and 1 in Dammam.
They will also be responsible for fitting out a feeder store/warehouse adjacent to or beneath each duty free shop.
The successful company will also be required to operate three (3) landside duty free bonded warehouses ? one at each airport. The situation regarding bonded warehouses at each airport is currently as follows:
Jeddah (KAIA): The successful proposer will be required to lease (at his cost) existing premises off airport.
Riyadh (KKIA): The successful proposer will be required to operate from an existing landside building which will be the designated landside duty free bonded warehouse.
Dammam (KFIA): The successful proposer will be required to build a landside bonded warehouse within the part of the terminal building which is currently unused.
International companies must satisfy both the financial and technical criteria stipulated in this RFQ. However, International companies must form a partnership with a pre-qualified Saudi company to respond to the RFP.
Saudi companies must meet the financial criteria stipulated in this RFQ and those who do will be notified by late June 2006 that they are partially pre-qualified.
They must then form a partnership with an international duty free operator to satisfy the technical criteria stipulated in this RFQ.
Companies which pre-qualify will be sent the Request For Proposals (RFP) package (upon payment of a fee of SR.60,000) and proposals must be submitted in writing by the date (and time) specified in the RFP.
G.A.C.A. expects to sign a contract with the successful proposer by mid-October 2006.

Information/Details Required
For the purpose of this pre-qualification, the response must address/provide at least the following:

Financial:
1. Copies of audited accounts for the last three years, for the company.
2. Financial net worth of the company.

Technical:
1. Details of current duty free business or businesses at other major airports, with information on annual sales levels.
2. Demonstrate a minimum of three (3) years experience in duty free shopping at other major airports.
3. Details of key management and directors of the company.
4. Details of any joint ventures in duty free operations in airports, giving the name of the joint venture party/parties and the shareholding of each party in the joint venture.
5. Marketing and management skills, with details of capability to establish, manage and operate the facilities proposed.
6. The legal status, corporate structure and country of origin of the company or a Memorandum of Understanding between the parties.
7. References from other airports where the company operates Duty Free businesses.

For more information and a copy of this RFQ please contact Concession Planning International at the address below while copying the General Authority of Civil Aviation:

Mr. Fouzi Fathaldin, Director General Business
Development and Properties Management
General Authority of Civil Aviation
PO Box 6326, Jeddah 21442
Kingdom of Saudi Arabia
Fax: 961 685 6086
E-Mail: [email protected]

Consultants: Concession Planning International Ltd (C.P.I.)
Consultants: Frank Gray
C.P.I. Ltd
Argosy House, Collins Court
High Street, Cranleigh
Surrey GU6 8AS
ENGLAND
Fax: (44) 1483 268509
E-Mail: [email protected]

Pre-Qualification Application Submission Deadline: Time and Date: 1700 hrs (Jeddah time) on Wednesday 24 May, 2006.

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