Tanzania Airports Authority seeks to diversify revenue

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By Alex Nelson Malanga

Dar es Salaam. The Tanzania Airports Authority (TAA) plans to diversify its sources of revenue to reduce dependence on traditional sources, while seeking to improve airport services.

Traditionally, TAA derives its revenue from two sources, namely: aeronautical and non-aeronautical royalties.

Non-aeronautical charges refer to the charges collected by an airport in return for the various commercial arrangements it enters into in connection with the granting of concessions, rental or leasing of premises.

Aeronautical charges such as landing, parking and departure charges are charges paid for services or facilities directly related to the aircraft, its passengers and its cargo as part of the facilitation of travel.

But in a statement to a media section yesterday, TAA said it intended to develop a four-star hotel and shopping complex and their associated facilities at Julius Nyerere International Airport (JNIA).

TAA intends to implement the projects under a public/private partnership (PP/P) agreement.

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“This is expected to help TAA generate more revenue aimed at improving airport services,” TAA said in a statement yesterday, adding that the planned facilities will also provide customers, passengers and the general public with choice. broader and better range of services. .

The investor sought will have to develop the structures within the framework of the design-build-operate-maintain and transfer schemes.

The qualification process will be conducted through international competitive bidding under the procedures specified in the P/PP Act, Chapter 103 and the P/PP Regulations, 2020, the TAA says, asking interested bidders to submit their applications by March 15. .

“Applications will be opened promptly thereafter in public and in the presence of the representatives of the bidders who choose to attend the opening in the TAA conference room of the Terminal 3 building of the Julius Nyerere International Airport,” the statement said.

According to Airports Council International (ACI), non-aeronautical revenues can be a source to help recover operating costs and reduce the use of aviation taxes for future airport development.

The TAA report for the 2019/20 financial year showed that 24% of revenue came from non-aeronautical revenue such as parking, advertisements, rents and concessions.

The remaining 76% came from aeronautical sources which include landing, parking, departure and security fees.

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