Talks on La Mercy funding get into gear

Feasibility study completed A FEASIBILITY study on the development of the proposed new airport at La Mercy, north of Durban, has been completed by the Airports Company of South Africa (Acsa) and a number of scenarios have been outlined, says Mashudu Ramano, Acsa's recently appointed chairman. "Once we have fully discussed these scenarios with various shareholders, we will make the outcome public," he says. But what is already known is that the airport - dubbed King Shaka Airport and Logistic Centre - will have Old Mutual Asset Managers (Omam), the South African Infrastructure Fund (Saif) and Australia's largest investment bank, Marquarie Bank, involved. The two South African institutions are locked in negotiations with the government over the proposed funding of the airport, while the Australian bank is involved in private sector investment in infrastructure projects in the region. A spokesman for Omam has said negotiations with the government are at an Ôextremely delicate stage', stating that it looks like it could be an attractive project for all the players involved. A funding package for the R893 million relocation of Durban International Airport is being finalised and is scheduled for cabinet hearing later in the year. Managing director of the infrastructure fund, Gavin Kerr, has indicated that the airport is of particular interest to his organisation as it falls comfortably within the Saif mandate. "We're talking to the KwaZulu Natal government as the drivers of the project. It's too early in the talks to establish exactly where we are going, but we are positive about the matter." The La Mercy project has the full blessing of transport minister Dullah Omar. The provincial government and the Durban Unicity have each pledged R250 million towards it. It is hoped to be up and ready by 2006 with a 3200m runway capable of accommodating the largest aircraft in use. A logistics facility linking existing road and rail infrastructure to the airport is also planned, together with an information technology hub to service the logistics industry.