Beirut International airport’s duty free zone tender won at $74 million

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Phoenicia Aer Rianta (PAC), chaired by Mohammad Zeidan, won the auction to run Beirut Rafic Hariri International Airport Duty Free Zone.

The contract is over four years, at a value of $74 million.

Jean Ellieh, General Director of the Department of Tenders, said that the value of the contract is divided into two parts: The fixed amount which is $45 million, in addition to a fee per passenger ($3.25).

“8.8 million passengers are expected to pass through the airport next year, bringing the total value of the contract to $74 million during the first year,” he said.

In the next three years, the variable cost is subject to change, depending on the number of passengers. But official statistics published by the airport show 7.6 million passengers in 2016.

A total of five companies participated in the auction. Three were rejected due to failing administrative conditions. Only one firm, the French-based Lagardère Travel Retail SAS (in joint venture with local firm L.A.D.F.J.V), was able to compete. Its offer was $46 million.

The other three companies whose bids were rejected were DFS Venture Singapore Limited with Kazma Group Holding, Security and Safety Solutions with Travel Retail Group, and World Duty Free Group with 3DF Holding.

PAC is a joint venture between Irish firm Aer Rianta International and Phoenicia Trading Afro Asia. It has operated the Duty Free Zone on the basis of a 15-year concession granted by the government in the early 2000s.

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