LEBANON. Long-time incumbent Phoenicia Aer Rianta Company (PAC) is poised to retain the duty free contract at Beirut Rafic Hariri International Airport, after it topped the tender bids for the business on Thursday.
PAC, a partnership between Phoenicia Trading and Aer Rianta International, bid US$74 million per year for the four-year concession, which generates turnover estimated at around US$240 million annually.
The bid attracted some of the world’s leading travel retailers. Apart from the incumbent, we understand bidders included a joint venture led by TRG Duty Free (a joint venture between DFASS and a local partner), Dufry, DFS Group and a partnership between Lagardère Travel Retail and The Chalhoub Group.
Financial offers were opened in Beirut today, following yesterday’s submission deadline.
The tender was conducted in two phases. In the first, bids were assessed for compliance to the tender rules. Then the financial offers of those that qualified were opened, with PAC finishing ahead of Lagardère Travel Retail/Chalhoub (which bid a minimum of US$46 million) as the highest bidder. Controversially, the other three bids did not make it to the financial stage and were ruled out for various administrative reasons.
The annual rent features a fixed amount plus a fee per passenger (US$3.25), which is changeable each year of the term depending on passenger numbers.
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