KUWAIT. Kuwait International Airport is seeking a partner to manage a five-year duty free contract in the new Terminal 4. The terminal was officially inaugurated earlier this month and is scheduled to begin passenger flights on 8 August, with full operations from October. The terminal, which is located around 1.8km from the existing airport, will be exclusively used by Kuwait Airways, the national flag carrier of Kuwait.
Incheon International Airport Corporation (IIAC) has a contract for management, training, maintenance and services at the 55,000sq m terminal, signed in April with the Directorate General of Civil Aviation (DGCA) in Kuwait. DGCA and IIAC are inviting interested parties to submit proposals for the duty free concession.
IIAC said in a statement: “On behalf of the DGCA, IIAC announced the tender to select competent operators who will newly establish and operate duty free stores in Passenger Terminal 4, which will serve as the core premises leading another round of development of Kuwait International Airport.”
Commercial space in T4 is around 4,620sq m with the duty free concession covering 13 stores across 1,578sq m.
A pre-tender meeting will be held on 29 July. All potential bidders can purchase tender documents (including RFP, Draft Concession agreement and Design Guideline) from today.
The deadline for bids is 26 August. Submissions should be accompanied by a bid bond of no less than KD1 million (US$3.3. million in the form of a certified cheque, or a Letter of Guarantee issued by one of the banks accredited to the State of Kuwait.
IIAC told The Moodie Davitt Report that the winning bidder is expected to start trading within two months of signing the contract.
Dufry-owned World Duty Free and partner That Es-Salasil run the duty free business in around 750sq m of space at the existing Kuwait International T1. In late 2014 the partners struck a five-year agreement effective from 1 March 2015 (with an extension option). They have been operating at the airport since 2006.
Passenger volume at the new terminal is expected to grow at a rate of around +5% per year over the coming five years (from a base of around 4.4 million in year one), said IIAC.
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