PANAMA. Two companies, Waked-run Grupo WISA and Motta Internacional, have split the three duty free concessions at Tocumen International Airport after a uniquely constructed, drama-packed open tender.
Waked has won two of the contracts and Motta Internacional (Duty Free of Panama) the third. UETA-DFA was the other bidder.
At stake were three ten-year contracts covering a total of 1,443sq m of commercial space.
Under the unique “˜match system’ the bid was separated into three blocks of space. In order to obtain a block the qualified participant had to match the highest bid offered for any given block – in other words all had to match the biggest single bid.
That turned out to be Grupo WISA’s aggressive offer of US$57.8 million, up-front. Each package offered the same space selling a range of goods – including fragrances & cosmetics, liquor & tobacco and watches and writing instruments. According to one very well-placed source, annual sales at the airport for the categories covered are around US$35 million-US$40 million [much lower than our earlier estimate = Ed], which would make the bidding levels extremely high to say the least.
Tocumen International Airport noted: “That represents an immediate income for Tocumen International Airport of a record US$173,250,000 – very high for a tender in this region.”
The original bids offered for a single block by each of the qualified participants were as follows.
Grupo WISA: US$57,750,000
Motta Internacional: US$35,915 844
UETA/DFA: US$30,770,000
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The winning parties celebrate the results |
In addition the successful parties have to pay 8% of sales per month and US$100 per sq m of space occupied, plus the one time up-front payment.
In a letter to suppliers today Motta Internacional President Erasmo Orillac said: “Motta matched the WISA bid for block 2, thus guaranteeing us 33% of the space available to these categories of product. This significantly increases Motta’s presence in the Tocumen Airport and we look forward to working with you in developing this point of sale.”
The airport said that it should generate an additional US$66 million through square metre-linked rental and the percentage of sales formula, which must be paid on top of the up-front concession fee. In total that will mean concession income of US$240 million.
It noted that this had been the first public tender for duty free at the airport in the past 25 years.
The head of the Group WISA consortium Abdul Waked (who is also President of Waked Internacional) declared that the tender was “an example of uprightness and transparency” for which he thanked the government.
MORE STORIES ON THE TOCUMEN INTERNATIONAL DUTY FREE TENDER
High-powered quartet in race for Tocumen duty free concessions – 20/04/07
