EXPRESSION OF INTEREST FOR THE DEVELOPMENT AND OPERATION OF FOOD & BEVERAGE AND RETAIL CONCESSIONS

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1 REQUEST FOR EXPRESSION OF INTEREST FOR THE DEVELOPMENT AND OPERATION OF FOOD & BEVERAGE AND RETAIL CONCESSIONS PACKAGE 10: SINT MAARTEN / CARIBBEAN FOOD

2 Disclaimer 1. Princess Juliana International Airport Operating Company N.V. ( PJIAE ) reserves the right to accept or reject any or all Expressions of Interest (EOI) without assigning any reason and is not obliged to correspond with the applicants in this regard. Furthermore, PJIAE reserves the right to change and / or cancel the pre-qualification and tender process and / or review / revise the prequalification criteria at any time without prior notice or without assigning any reason whatsoever, and this shall be without prejudice to its rights to re-tender at any time in the future and in such case, no applicant(s) / intending applicant(s) shall have any claim arising out of such action. 2. PJIAE reserves the right to issue amendments to this Request for Expression of Interest by issue of addendums, at any stage, without liability or any obligation for such invitation and without assigning any reason. The request for EOI does not give rise to any rights and is not an offer or an invitation to offer. 3. EOI, by a party, shall be considered as an acceptance of all the terms and conditions of this invitation by such party and no claims or disputes shall be accepted by PJIAE. 4. All the documents and other information supplied by PJIAE or submitted by an applicant to PJIAE shall remain and / or become the property of PJIAE. PJIAE will not be liable to return any application(s) or any information provided along therewith. 5. Submission of EOI by a party shall not create any contractual obligation between that party and PJIAE. 6. The applicant shall bear all costs associated with the preparation and submission of its EOI. PJIAE shall in no case be responsible or liable for these costs, regardless of the conduct or outcome of the EOI process. 2

3 CONTENTS INTRODUCTION... 4 CONCESSION PLAN... 8 PACKAGE NUMBER & QUALIFICATION CRITERIA DETAILS OF EXPRESSION OF INTEREST

4 INTRODUCTION Princess Juliana International Airport operating company N.V. Princess Juliana International Airport Operating Company N.V. ( PJIAE ) is a limited liability company that was organized under the laws of the Netherlands Antilles and incorporated on September 13, The Government of St. Maarten issued a business license to PJIAE on August 26, PJIAE manages, operates, maintains and develops the Princess Juliana International Airport ( PJIA ) in St. Maarten. PJIAE is wholly owned by the Princess Juliana International Airport Holding Company N.V. ( PJIAH ), which in turn is wholly owned by the Country of St. Maarten. The St. Maarten Government granted PJIAE a concession for a twenty-year period, effective January 3, This concession was extended in 2004 and presently expires in Mission The mission statement of Princess Juliana International Operating Company N.V. (PJIAE) is: To be the regional leader in providing safe, secure, quality and profitable airport services that contribute to the general economic and tourism development of St. Maarten/St. Martin and the region we serve. Vision En Route to New Horizons, to Create Value for Stakeholders Princess Juliana International Airport The Princess Juliana International Airport ( PJIA ) is the airport of St. Maarten. It is located on approximately 60 hectares of land, roughly 10 kilometers south-west of Philipsburg and 5 km south-east of Marigot. The Airport is situated on land issued by the Island Government of St. Maarten to the Princess Juliana International Airport Holding Company N.V and operated under concession by the Princess Juliana International Airport Operating Company N.V. By operating the Airport, PJIAE plays a central role in the economy of St. Maarten and functions as a premier gateway for the surrounding islands. The Princess Juliana International Airport comprises a network of about 80 companies, organizations and public agencies, jointly constituting the Princess Juliana International Airport. There are approximately 1200 people employed at the Airport of which 270 directly for PJIAE. Airport Master Plan Since 1964 when our former terminal first opened, the airport has seen considerable expansion and growth, with traffic levels exceeding the previous design capacity of 1.2 million passengers. Recognizing the facilities would not suffice the needs of St. Maarten to maintain its position as a premier travel destination in the region, an Airport master plan was developed and The New Terminal Building opened its doors on October 26, The Airport 4

5 master plan covers three phases of development of the Airport in accordance with forecasted passenger volumes. Phase I Phase I was aimed at addressing the most urgent facility constraints to ensure a safe, secure operation and increase comfort for the passengers and other airport users. It covered some 15 projects with a capital investment of approx. USD 31 million. Projects executed under phase I included: the runway resurfacing improvement, the filling of the Flamingo pond and creation of additional apron space, renovation of the arrival and departure hall, the construction and creation of the Soualiga Business Class Lounge. Phase II Phase II included the construction of The New Terminal Building with related facilities, an expanded apron and the Integrated Air Traffic Control Tower and Radar Facility. Phase III after 2012 If traffic develops as forecasted, a third phase will be executed, consisting of an extension of the terminal building and the construction of a full parallel taxiway system. Airport Facilities: The Current Terminal Building 4 level terminal building with area approximately 27,000 m2 Maximum capacity of 2.5 million passengers per year 43 common-use check-in positions with CUTE and 12 Common Use Self Service kiosks Maximum 6 security screening positions Approximately 2,500 m 2 retail space 100% Hold Baggage Screening with Explosive Detection system Fully air-conditioned terminal building Airside Expanded Apron Land side 560 parking positions for general public and employees Upgrade curb, taxi, bus infrastructure including rerouted airport road Recent Developments Since 2001, PJIAE has recorded yearly traffic movements between 1.4 and 1.6 million passengers, with a peak in 2008 of 1.7 million. Average passenger movements before 2001 was 1.5 million per year, tapering off to 1.4 million in 2002 after the September 11, 2001 terrorist attacks in the Unites States. In 2003 the industry showed signs of recovery and 5

6 demand for passenger travel increased; as a result traffic at PJIAE gradually increased reaching its average peak of 1.6 million in 2004 a 9.4% increase over Since that year passenger movements remained at the 1.6 million yearly average, climbing to 1.7 million in 2008, in spite of a troubled aviation business, caused by high fuel prices and slowing demand for air travel in certain regions in the earlier part of PJIAE traffic comprises of international origin and destination traffic, which make up approximately 73.7% of enplanements (based on the yearly averages from 2000 to 2010). Transfer passengers account for a large percentage of passengers. The importance of transfer passengers is attributable to St. Maarten s favorable geographical location, as a result of which PJIA functions as an important hub for the surrounding islands of Saba, Statia, St. Barths and Anguilla. PJIAE recorded a 5.8% decline in traffic volumes in 2009 of 100,692 passengers, dropping from 1,726,656 in 2008 to 1,625,964. In 2010, PJIAE recorded a total of 1,645,105 passenger movements, up slightly by 1.2% compared to 1,625,964 recorded in After a turbulent marked by decreased passenger traffic as a result of a global economic downturn, particularly in the US, coupled with the scare of the H1N1 virus in the early part of this increase however small, signifies that traffic at PJIA has begun to stabilize. Ongoing surveys of arriving passengers conducted at PJIAE, show that the United States continues to be the primary market for St. Maarten in terms of the origin of visitors. In 2009 the US passengers share in the total amount of arrivals at PJIAE was 42%, while in 2010 this amount increased by 3% to 45%. PJIAE recorded 60,870 aircraft movements in 2010; an average of about 170 scheduled and charter aircraft movements a day. This however, represented a decrease of 2.8% compared to A weakened demand in 2009 for air travel due to the global economic downturn, along with the high cost of fuel, have forced airlines to manage capacity wisely. While this resulted in higher yields for airlines, the number of frequencies were reduced, thereby affecting the total movements at PJIA. This was particularly evident right after 2009 in the 1st and 2nd quarter of 2010 and also in the 3rd quarter. It is only in the last quarter of the year that movements started to increase once again. Although not quite up to 2008 levels yet, 2010 numbers are promising. With regards to increased airlift, in November 2009 Westjet Airlines started scheduled services to St. Maarten from Canada and in December 2009 Air Caraibes started direct flights to Orly France. December 2010 saw the addition of Copa Airlines starting scheduled services to St. Maarten from Panama City, Panama. PJIA is serviced by 23 scheduled carriers and offers direct service to 34 destinations, with onward connections to other Caribbean islands as well as to many other cities in the US, 6

7 South and Central America, Canada and Europe. Efforts are ongoing to further diversify the market with a specific target towards the South American and the European markets. PJIAE meets with various airlines particularly from Latin America and the United Kingdom at route development conferences such as Network and Routes to discuss possible future service to St. Maarten, as countries such as Argentina, Venezuela and Great Britain may constitute important future markets. 7

8 CONCESSION PLAN As part of the continuous development of Princess Juliana International Airport to offer the passenger world-class facilities and services, the airport is currently completely re-designing and re-developing the commercial area in the terminal building. The new commercial concept will offer passengers a modern, diverse, localized and exciting new shopping and food & beverage experience. It will be characterized by modern architecture and design, with a wide range of commercial offerings, colors, a friendly environment and everything else you expect to find at a Caribbean airport. The objective of the new commercial concept is to give the airport a vibrant image with a true sense of St Maarten and to increase passenger comfort and spending, allowing concessionaires to increase their performance and PJIAE to increase its non-aviation revenues. PJIAE is inviting experienced world-class operators to submit an Expression of Interest (EOI) to establish operations at the hub airport of the Caribbean - Princess Juliana International Airport. The current concessionaire agreements for Retail units expire on June 30th, The current concessionaire agreements for Food & Beverage units expire on June 30 th, All Retail and F&B units will now be tendered. The new concessionaire agreements (5 years for Retail and 7 years for F&B) will all commence on July 1 st, A process will be in place for the remaining duration of the current F&B agreements. Full details of the Concession plan including a floor plan will be disclosed in the Request for Proposal (RFP) period which follows the EOI period. 8

9 PACKAGE 10: SINT MAARTEN/CARIBBEAN FOOD The Sint Maarten/Caribbean Food outlet is located in the airside post-security departure hall food court. Sint Maarten/Caribbean Food measures approximately 40 m 2 (excluding a seating area). The unit is a counter outlet with kitchen in the back and has a rectangular shape. The Sint Maarten/Caribbean Food outlet will sell the following product assortment: Local Sint Maarten/Caribbean food The contract will be for seven (7) years. 9

10 PACKAGE NUMBER & QUALIFICATION CRITERIA Package 6: Sint Maarten / Caribbean Food outlet Total range of current activities Proven experience in Sint Maarten / Caribbean Food outlet category Financial, managerial and operational capabilities Minimum turnover USD 250,000 (average in the last 3 financial years). Outstanding claims or litigation No outstanding debts with PJIAE (for current PJIA concessionaires with outstanding payments) and not involved in any litigation (with PJIAE or other parties). Business registration The bidding company must be a business entity registered in St Maarten. 10

11 DETAILS OF EXPRESSION OF INTEREST Qualification criteria to submit Expression of Interest (EOI) As per the table: Package Number & Criteria Submit all credentials to support the qualification criteria such as, annual financial reports, bank certificates, experience letter, capability statements, etc. Issuance of Request for Proposal (RFP) Document The RFP documents shall be issued only to the short-listed parties, who fulfil all criteria mentioned in this EOI document. The RFP period starts on 5 February 2013 with a submission of proposal deadline on 25 March. Document Costs in the RFP phase There will be a non-refundable fee to be paid by all bidders in order to obtain the RFP document to cover administrative and legal costs of US$ (Fifty US dollars). PJIAE will contact all candidates eligible to obtain the RFP documentation on or before February 1 st Document Submission Please send the Expression of Interest with your credentials and company presentations in a double envelope. The inner envelope should be in the inscription: Expression of Interest for the development and operation of Food & Beverage & Retail Concessions at Princess Juliana International Airport: Package 10: Sint Maarten/Caribbean Food outlet Princess Juliana International Airport Marketing & Communications Department Princess Juliana International Airport Operating Company N.V. The outer envelope must bear the following address: Princess Juliana International Airport Operating Company N.V. Marketing & Communications Department P.O. Box 2027 Simpson Bay St. Maarten 11

12 Attention: Ms. Suzy Kartokromo, Senior Business Development Officer - Marketing & Communications The outer envelope must be sent and received by registered letter with acknowledgement of receipt or be delivered against receipt to the address above, in both cases no later than Thursday, 24 th January PJIA does not take any responsibility for delayed delivery. Information summary: Purpose of EOI: To operate a Sint Maarten / Caribbean Food outlet in the airside post-security departure hall of the Passenger Terminal Building at Princess Juliana International Airport Package Number: Package 10 Period of Contract: 7 Years Last date of submission of EOI: Thursday, 24 th January

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