The upgrading of Plettenberg Bay’s airport is inching forward, with plans to invite proposals from prospective long-lease tenants next month.
The airport would have cost too much to upgrade to the standards required by the Civil Aviation Authority to implement scheduled airline flights and the council decided earlier this year to instead lease the land for at most 49 years to a tenant which could upgrade the facility.
The council rejected a suggestion by municipal corporate services head Carl Mattheus to keep the lease around R1 a year to allow the bidder to spend R50-million on the upgrade and recoup the investment.
Councillor Euan Wildeman’s proposal that the lease amount be negotiated with the successful bidder was accepted instead.
The municipality is consolidating the sections of land it owns that will form part of the airport complex. It is also in talks with BP, which wants to remove its aviation fuel tanks.
Bitou Municipality is leasing two tanks for 10 years from BP, but the fuel giant has indicated it wants to pull out by November 16. The municipality is obtaining legal advice on the “one-sided” termination of the lease.
If BP removes the tanks once they are empty, the successful bidder will have to install tanks, or alternatively negotiate with BP to buy the current tanks for about R1-million.
Last month, a bid specification committee met to discuss the various aspects the successful bidder will have to comply with in order to lease and develop the airport.
The mayoral committee was asked this week to give clarity on a number of issues that need to be included in the winning bidder’s plans.
According to the airport master plan, the runway must have been lengthened and widened by 2025, lighting and precision approach path indicators must be installed, the terminal building must be expanded and the fuel facilities upgraded.
The tenant will need to provide specialised emergency services and an automated weather system, take over the leases of the 42 private hangars, and implement scheduled flights at least two days a week.
The tenant will also take responsibility for auxiliary services such as catering, retail and car rental.
Municipal manager Lonwabo Ngoqo also recommended that the black economic empowerment status of the prospective bidders be confirmed.
“This BEE component again goes to the issue of paying lip service to transformation,” Mayor Lulama Mvimbi said, making reference to an earlier comment when he said it was vital that black economic empowerment be vigorously promoted to address the inequalities of the past.