The New Northern Madagascar Airport by Harley Ithier

THE NEW NORTHERN MADAGASCAR AIRPORT A PROJECT SUMMARY

Presentation : Madarise -

March 2019

NORTHERN MADAGASCAR AIRPORT Project Brief

ABSTRACT The new Malagasy Northern Airport will not be built in isolation. There are a number of major infrastructure development that makes the Greater Diana Region a new Modern Smart City in Northern Madagascar and the Indian Ocean. SUMMARY OF THE NORTHERN MADAGASCAR AIRPORT PROJECT Mars –2019 BY MADARISE ©

www.madarise.com info@madarise.com

Northern Airport Project Summary - 2019©

CONTENTS

2 3 4

7 8

Executive Summary IVATO INTERNATIONAL AIRPORT Technical specifications Ivato connections Routes and destinations Two Malagasy airports turning ‘green’. ARRACHART AIRPORT (DIEGO). Arrachart airport challenges NEW GROWTH FACTORS IN THE NORTH OF MADAGASCAR Historical context THE NEED FOR A NEW AIRPORT IN THE NORTH The proponents of the northern international airport A cooperation across value chain Regulatory framework The role of an airport lessee company The airport plan STAGE 1 AIRPORT Long term development The terminal covers an area of 60,000m2. Operation of the airport and airspace design Community consultation Improvement in the northern infrastructure Biodiversity Surface water and groundwater Planning and land use Social Economic Resources and waste Long term airport strategic environmental assessment Traffic SUSTAINABLE JOBS CREATION FOR THE NORTHERN REGION Madarise commitment to the people in the North Jobs in the construction phase When construction jobs will be needed Business park on the airport site WHAT’S NEXT? Getting the right skills CONCLUSION

Northern Airport Project Summary - 2019©

EXECUTIVE SUMMARY INTRODUCTION TO A PROPOSED INTERNATIONAL AIRPORT IN THE NORTHERN REGION OF MADAGASCAR. PREAMBLE In 2017 in the context of its national economic and infrastructure integrated development initiative in Madagascar, Madarise announced its intention together with the Malagasy government to build an International Airport in the Diana region near Diego Suarez. There was already an airport in the north at a site called Andrakaka in the distant past. This presently unused Airport occupies some 436,064 square meters with a landing strip in concrete of 2,600 meters long and 44 meters in width. It has also two parking areas for planes with a total of 5 hectares. The available surface is 2956 hectares. It was still in use recently and is only about 1,000 meters from the port of Diego Suarez and 50 kms from the town of Diego. Local engineers involved in aviation have confirmed that Andrakaka may accommodate large carriers such as the A380. The proposed Northern Airport would cater for ongoing growth in demand for air travel, particularly in the rapidly expanding northern region, as well as providing additional aviation capacity in Madagascar more broadly. An airport in Northern Madagascar would also provide long term economic and employment opportunities in the surrounding Diana area and accelerate the development of critical infrastructure for rural and urban development for the North. The proposed airport is planned to be operational by the mid-2024 and would service both domestic and international markets. Development would be staged in line with ongoing growth in aviation demand. Catering for increasing demand for air travel in the Northern region and the broader Madagascar and extending to the COI region and beyond, the proposed Northern Airport is predicted to service 1 million passengers per year by 2025 and grow to 5.0 million passengers in the next 15 years.

Northern Airport Project Summary - 2019ÂŠ

1. IVATO INTERNATIONAL AIRPORT Ivato International Airport has been the main airport of Antananarivo since the 1960s. It is a civil and military mixed platform and main hub in Air Madagascar. It has two main terminals: one terminal for domestic flights and one terminal for international flights. In 2016, 845,000 passengers passed through the airport. Since December 23, 2016, the International Airports of Ivato and Fascène in Nosy Be have been operated by the concessionaire Ravinala Airports (Meridian: 45%, ADP Group: 35%, Bouygues: 20%, Colas: 20%) under a 28-year concession contract. The Airport at Ivato has been renovated and will build a new international terminal of 17,500 m2 with an initial capacity of 1.5 million passengers. technical specifications Runways • Runway Dimensions • Runway # 1: 3,100 m x 45 m • Orientation: 114° /294° • Surface: Asphalt Airport Operating Details • Maximum Sized Aircraft that can be Offloaded on Bulk Cargo: B747-400 Ivato connections The Ivato International Airport connects Antananarivo to the main cities of the country, as well as to South Africa, China, France, Kenya, Mauritius, Mayotte, Reunion Island, Seychelles, Thailand, Turkey and the Union of the Comoros. In 2016, these two airports welcomed 845,000 and 147,000 passengers respectively, two thirds of which consisted of international passengers. Their expected average annual passenger numbers would rise by at least five percent over the coming years. routes and destinations Saint-Denis de la Réunion, Paris, Johannesburg, Mauritius, Mahe, Anjouan, Moroni, Nairobi, Anjouan, Antalaha, Antsiranana, Guangzhou, Bangkok, Dzaoudzi, Majunga, Marseille, Mauritius, Morondava, Toamasina, Moroni, Nosy Be, Sambava, Tôlanaro, Saint-Denis de la Réunion, Sainte Marie and Toliara are the domestic as well as international destinations which are directly connected to the Ivato International Airport.

Northern Airport Project Summary - 2019©

Tamatave airport,

Sambava airport,

Maroantsetra airport,

Antananarivo airport,

Fort Dauphin airport,

Sainte Marie airport,

Nossi-be airport,

Antsiranana / Arrachart airport,

Morondava airport,

10.

Tulear airport,

11.

Majunga airport,

This concession is looked upon as a major opportunity for the Malagasy Government to foster economic growth in the country, particularly focusing and supporting a growing tourism industry. Construction works at Ivato Airport and Fascene Airport are scheduled to be finished in early 2020. The estimated workforce during construction of Stage 1 would be expected to peak at around 700 to 800 jobs in 2022.

Ivato Airport Northern Airport Project Summary - 2019ÂŠ

two Malagasy airports turning ‘green’ Combining sustainable development and a fresh business approach, the Malagasy airports development project is presently well under way with the new terminal building at Antananarivo-Ivato International Airport due to open early in 2020. The major works include the renovation of runways and aircraft parking areas as well as terminals at Nosy Be (where the runway resurfacing is complete) and the construction of a new 1.5-million passenger terminal at Ivato. A state funding package has enabled Group ADP to begin work and has facilitated the project to develop the island’s 2 airports in response to forecasts showing an annual 5% growth in traffic. This project is a strategic partnership between Air Madagascar and Air Austral. The Future development in aviation will definitely be “green”.

Design and construction of a new international terminal at Ivato airport in Antananarivo. Arrachart Airport (Diego) The nearest Airport near Diego Suarez (Antsiranana) in the Northern Region of Madagascar is Arrachart Airport (IATA: DIE, ICAO: FMNA). The runway measuring 1,500m long is the shortest track of the island. Unfortunately, there are some negative factors on this airport size, and the geographical location as the spot is covered with a fair bit of landforms of the ‘French Mountain’ which is located on the axis of the runway that is a real challenge for takeoff and landing of large aircraft. For safety reasons the maximum load capacity of aircraft is rarely reached.

Northern Airport Project Summary - 2019©

The improvement of Arrachart is limited because of the continuous growth of the urbanization and the national6 road that run by the side of the airport. On average, Arrachart receives 6 movements of planes per day. It is noted that the current ICAO standards mean that the Boeing 737 will soon be banned from landing at Arrachart. Arrachart airport challenges Airport type Public: Operator Government Serves: Antsiranana, Madagascar Elevation AMSL: 374 ft / 114 m Coordinates 12 ° 20'57 "S 049 ° 17'30" ER runways Direction 13/31 Length 1,500 m 4,921 ft Surface: Asphalt Diana is in the most northerly part region of Madagascar. It borders the regions of Sava to the southeast and Sofia to the southwest. It covers an area of 19,266 square kilometers, and had an estimated population of 1,407,000 in 2019. The regional capital is Antsiranana (previously known as Diego Suarez).

“The Arrachart Airport has limited ability to handle further passenger growth due to the physical constraints at the existing site.” The limitations of existing infrastructure and facilities are more than apparent and are expected to become more pronounced over the coming decades. In the absence of additional aviation capacity in the Northern region by around 2030, there would be practically no scope for further growth of regular passenger services at Arrachart Airport. Demand for aviation services is anticipated to continue to increase to service the ongoing growth in population, tourism and business activities. With the current growth we can anticipate the population growth up to 2,000,000 people within the next decade.

Northern Airport Project Summary - 2019©

Northern Airport Project Summary - 2019Â©

2. NEW GROWTH FACTORS IN THE NORTH OF MADAGASCAR The New Northern Airport will not be built in isolation. The present growth of the region indicates that it will soon be the second most populated region after Tana. There are a number of major infrastructures that will help to make the Greater Diana Region a new modern smart city in the North. 

       

The new freeways of 1100 Kms from Diego to Tana, 200 Kms from Diego to Nosy-Be on the west coast and the third from Diego to the east coastal town of Sambava 450 Kms The projected Population growth The COI and Vanilla Islands anticipated tourism growth The construction of the largest Club Med in the world The constructions of a number of new hotels and residences The 100,000 new home units spread in the Diana Region The new international well-known Leisure Park The Northern Special Economic Zone (SEZ) The largest conglomeration of ports in the Indian Ocean: Sea - Port, Cruise Port, Fishing Port, Container Port and Naval construction site. The new Diego Smart city The development of a new agri-business industry The new bridge that links Andrakaka to Diego city The new international airport The new financial center The new vocational and professional training center The new metro light rail and the high-speed train network The new hospital and health care clinics and facilities in the Northern region.

Cruise Port Northern Airport Project Summary - 2019©

We definitely need a modern and efficient International Airport to cover the shortfall in capacity to meet travel demand. This new capacity will affect future economic growth, productivity, employment and quality of life for the people in the North. The Airport is easily accessible from the Diego Northern road and other Madarise upcoming Northern highway projects, including a modern railway network for high speed trains that can serve without difficulty the various centers of Madagascar. The projected economic cost of not meeting the expected increased demand would be substantial. By 2050, the economy-wide, direct and flow-on, will have impact across all sectors of the Malagasy economy. Strategic alternatives to the development of a new airport in Northern Madagascar when assessed in the light of the anticipated growth include increasing the capacity of Arrchart Domestic Airport or other existing airport facilities, like in Nosy- Be or using high speed rail as a substitute for aviation services. While these alternatives have demonstrated potential to provide marginal capacity benefits, they would not replace the need for the proposed modern International Airport for a thriving and growing region. We do not believe these alternative options are the most effective way to address increased aviation demand. As well as providing additional aviation capacity in the Northern Region, locating the proposed Airport at Andrakaka or the surrounding region would provide access to aviation infrastructure in the north for this seriously populated and growing region. Development of the proposed airport is expected to provide the current and future community with improved access to aviation services by reducing travel times, increasing destination choice and increasing competition. North Madagascar contrary to presently congested Tana remains a dynamic multicultural region and is currently home to around 1.5 Million people and with the upcoming economic and infrastructure development would accommodate easy 1.0 M new residents. This population growth within the next twenty years will make the Diana region the second largest populated area of Madagascar with 10% of the Malagasy population living in the north. As already indicated, there are a number of key industries in the area that depend on air transport services based in the area and the development of a new airport is likely to trigger further growth in aviation dependent industry sectors given the availability of land, labour and transport linkages. The Northern International airport in the fastest growing northern region of Madagascar would definitely be a major catalyst for growth in investment, infrastructure and jobs throughout this area.

Northern Airport Project Summary - 2019ÂŠ

3. IMMEDIATE IMPACT OF THE NORTHERN AIRPORT The Madagascar Northern Airport project represent a step change for the countryâ&#x20AC;&#x2122;s economic development drive. An Efficient and modern Airport is one of the foundation elements of progress. It is a significant employer in its own right and catalysts for growth in almost every sector of an economy. For the Northern Airport we have a highly skilled, globally experienced and strongly motivated private sector airport operator. For the Northern Airport, in contrast, cumulatively, construction of the proposed airport would generate approximately 6,000 persons of direct employment. In addition, there would be indirect and induced employment in the Northern Madagascar region. During the construction period we project some 6,000 workers. During the same period, the proposed airport would generate an additional 6,000 indirect and induced employment in the greater Diego region. historical context The need and potential location for an international airport in the Northern region of Madagascar has been considered periodically since before 1942. The choice of the site at Andrakaka, was confirmed and in 1942 the Royal Airforce (RAF)built the airport on a site of 3,000 Ha. Andrakaka was first identified as a preferred site in the Major Airport Needs of Madagascar during the French occupation. The study identified Andrakaka as the preferred site on strategic, environmental, economic and financial grounds. Land acquisitions for Andrakaka was made by the authorities and until now remains under the ownership of the Malagasy Government.

Northern Airport Project Summary - 2019ÂŠ

The North

Northern Airport Project Summary - 2019Â©

4. THE NEED FOR A NEW AIRPORT IN THE NORTH The scope of the EIA report will assess the environmental, social and economic impacts of constructing and operating this major international airport in the North of Madagascar. Given that there was already the Andrakaka Navy Airport there and the land is fairly flat, at first estimation and evaluation, there ae no insurmountable challenges in developing an Airport on the existing site. Nevertheless, it will be upon the recommendations of the experts that we will adopt the way forward. The need for development of the proposed Airport is driven by the continued growth in demand for aviation services in the North of Madagascar and the potential of the Diana region more broadly and physical constraints at the existing Arrchart Airport. Aviation services are critical to a country with aspirations like Madagascar. Efficient access to air services for passenger travel and high-value freight is essential to ensure that Madagascar becomes an international commercial and financial center and climb into the place of a foremost tourist destination in the region the proponents of the Northern InternationalAirport The proponents for the development and operation of the proposed airport is the Malagasy Government representing the population and the public sector and Madarise representing the private sector and the Malagasy diaspora. The Malagasy government role through its agencies is responsible for national policies and programs that promote, evaluate, plan investment in infrastructure and regional development, and foster an efficient, sustainable, competitive, safe and secure transport – domestic and international system for Madagascar. Construction to prepare the site, including earthworks may be undertaken by the private sector. An airport lease would be granted by the Malagasy Government and Madarise to an airport lessee company (ALC), which would then become responsible for developing and operating the proposed airport. Once the Malagasy Government decides to proceed with the project, a contractual offer (a ‘Notice of Intention’) would first be issued to Madarise. The Group would then have the opportunity to exercise its option to develop and operate the airport. The Notice of Intention would set out the detailed terms for the development and operation of the airport at Andrakaka, including technical specifications, contractual terms and development timetables.

Northern Airport Project Summary - 2019©

a cooperation across value chain Support cooperation among stakeholders, including World Tourism Organization (UNWTO), International Air Transport Association (IATA), Airports Council International (ACI), African Airlines Association (AFRAA), African Civil Aviation Commission (AFCAC), African Union Commission (AUC), Airlines Association of Southern Africa (AASA) Madagascar encourages cooperation among the various parts of the air transport value chain at the country level and at the international level, as well as cooperation with partner organizations. regulatory framework T o attract public/private capital, such as public private partnerships (PPP)\The Law on Public-Private Partnerships (PPP) is in the process of being adopted in Madagascar. This initiative will provide sufficient infrastructure to accommodate growth and increase awareness and guidance on infrastructure funding.   

Grant 7th freedom traffic rights for air cargo services Align Air Services Agreements (ASAs) with YD Implement Yamoussoukro Decision (YD) framework

Madagascar complies with the implementa1on of the regulatory context of the Yamoussoukro Decision (YD) such that airlines may freely take advantage of their relationships within the entire African continent. Additionally, Article L6.3.3-1 of the Malagasy Civil Aviation Code (Law No. 2072-011 dated 13 August2012) stipulates that scheduled intra-African air transport services shall be operated in accordance with the provisions of the multilateral agreements reached among the States of the African continent or among the members of a regional group of these States and ratified by Madagascar. Madagascar is preparing for inclusion in the single air transport market in order to maximize the advantages for the entire continent as soon as possible, and it does so in reference to the 47th AGA of the AFRAA, in which Madagascar participated, which was held from 8 to 10 November 2015 in Brazzaville (Republic of Congo) with the theme "Open Skies: Growth through Competition and Collaboration" inspired by the solemn commitment of the Heads of State of the African Union to open up the African airspace, thereby creating a single air transport market by 2017. Eleven African States (including the Republic of Congo) committed to the full, immediate, and unconditional opening up of their airspace in accordance with the Yamoussoukro Decision.

Northern Airport Project Summary - 2019©

In Madagascar, the national security program approved in 2013 in accordance with Decree No. 2013-328 dated 8 May 2013 approving the national civil aviation security program is currently being revised following the recommendations of the ICAO USAP audit in 2013. Similarly, the national air transport facilitation program approved in 2010 pursuant to Decree No. 2010-755 dated 10 August 2010 approving the national civil aviation facilitation program is also currently undergoing revision. The proposed Northern Airport is one of the largest infrastructure projects considered in Madagascar in recent years and would be the first major new Malagasy airport development in decades.

Northern Airport Project Summary - 2019ÂŠ

the role of an airport lessee company Once an airport lease is granted, the airport lessee company (ALC) would be responsible for the implementation of the proposal in accordance with an Airport Plan. The ALC would also be responsible for planning and development assessment for all future development of the airport in accordance with the Airports regulatory requirements. Within five years of an airport lease being granted by the Government for the airport site, or such longer period as approved by the appropriate authorities and ministries for infrastructure and regional development, the ALC would be required to submit a master plan for approval to the government. All future development for the proposed airport must be consistent with the master plan and existing regulatory requirements, including requirements for public consultation and approval of major development plans for major or sensitive developments.

the airport plan Phase 1 of a Northern International Airport will be constructed and operated in accordance with the Airport Plan, which forms a transitional planning instrument. The Airport Plan will consist of three main parts: â&#x20AC;˘ Part 1 is the title section and provides an overview and regulatory context; â&#x20AC;˘ Part 2 outlines the concept design for the Stage 1 development and an overview of the long-term development; and

Northern Airport Project Summary - 2019ÂŠ

â&#x20AC;˘ Part 3 details the specific developments which will form the Stage 1 development. The concept design outlined in Part 2 of the draft Airport Plan provides the planning framework for the proposed International Airport until the first master plan is in place. This part includes the development objectives, indicative flight paths, projected aircraft noise contours and the land use plan for the Airport site. The initial Airport development (referred to as Stage 1) is designed for the predicted demand of up to 1 million passengers annually as well as freight traffic for five years following opening around 2025 until around 2030. The draft Airport Plan also refers to the potential long-term development of the proposed Airport. As demand increases beyond 2.5 million annual passengers, additional aviation infrastructure and aviation support precincts would add capacity to meet growing aviation demand. It is anticipated that the proposed Airport may eventually expand to include a second parallel runway on the same orientation as the Stage 1 runway, with associated expansion in aviation supporting facilities. The need for a second runway would be triggered when the operational capacity approaches 5 million annual passengers, which is forecast to occur by around 2050. The long-term passenger capacity of approximately 8 million annual passengers is forecast to occur by around 2060.

Air Mad The Land Use Plan as presented in the draft Airport Plan would be applicable in the period between an airport lease being granted to an ALC and a master plan being

Northern Airport Project Summary - 2019ÂŠ

developed by the ALC and approved by the appropriate authorities. The Land Use Plan regulates the types of development, in terms of permissible land uses, that can occur within the Airport site. It also outlines land uses and indicative developments that would facilitate long term growth. Determination of an Airport Plan would authorize the Stage 1 development encompassing the initial design, construction and operation of the proposed Airport (that is, the activities described in Part 3 of the Airport Plan). The EIA provides a detailed consideration of likely environmental impacts arising from the Stage 1 development based upon the defined design and operational parameters described in the draft Airport Plan. The EIA also provides a strategic level environmental assessment of a possible longterm development of the proposed Airport. This approach enables preliminary consideration of the extent of potential long-term impacts (such as noise exposure) and, in particular, can help inform land use planning decisions in the vicinity of the Airport site. Future developments would be subject to separate approval processes through master planning and major development plan requirements.

Airport Terminal

Northern Airport Project Summary - 2019ÂŠ

5. STAGE 1 AIRPORT PLAN The proposed Stage 1 development would include a 3,700-meter runway, positioned in the northern portion of the site. The Stage 1 development also includes a single, fulllength taxiway parallel to the runway, and a range of aviation support facilities including passenger terminals, cargo and maintenance areas, car parks and navigational aids. The Stage 1 development is designed to be capable of facilitating the safe and efficient movement of up to 5 million domestic and international passengers per year, which is equivalent to approximately 30,000 air traffic movements annually, including freight movements, while also allowing sufficient space for future expansions. The proposed Airport would operate on a 24-hour basis. The draft Airport Plan would also set aside areas for a range of commercial uses (as set out in the land use plan) outside the airport terminal, such as retail and business parks. Any such commercial uses would be subject to separate consideration and approval requirements. The Stage 1 development would encompass the entire 2,956-hectare airport site. The majority of construction activity for Stage 1, including bulk earthworks and aviation infrastructure works would be restricted to a 1000-hectare Stage 1 construction impact zone, which is predominantly located in the north eastern portion of the site. The rest of the area is reserved for future development activities which, over the long term, could include construction of a second runway, and expansion of aviation uses and business development in accordance with the Airport Plan. Activities associated with these future uses do not form part of the Stage 1 development. 6. LONG TERM DEVELOPMENT It is expected that the proposed Airport would be progressively developed as demand increases beyond 5 million passengers annually. Additional aviation infrastructure and support services such as taxiways, aprons, terminals and support facilities would be required to service the growing demand. Future developments beyond the scope of Stage 1 would be subject to the requirements of the Airports Plan. The need for a second runway would be triggered when the operational capacity approaches 5 million passengers annually, which is equivalent to approximately 50,000 air traffic movements per year. A second runway is forecast to be required by around 2050 and would be located parallel to the first runway with a center line separation distance of approximately 1,900 meters.

Northern Airport Project Summary - 2019ÂŠ

the terminal covers an area of 60,000m2. Construction works under the second phase, EPC-2, will begin in 2040. It includes the construction of an integrated passenger terminal building and an air traffic control (ATC) tower. The ATC tower is 30m tall, covering an area of 600m². A technical block covering an area of 1,900m² is connected to the ATC tower. The runway is expected to be expanded to 4,000m in the future. The terminal covers an area of 60,000m² and is designed to achieve a green rating for integrated habitat assessment (GRIHA) and leadership in energy and environmental design (LEED) certification. A car park is constructed covering an area of 22,000m². A corridor connects the passenger terminal building to the car parking area. The two-level corridor covers an area of 1,000m².

Other facilities, including a sewage treatment system, a hydropneumatics system, electrical substations, heating, ventilation and air-conditioning (HVAC), firefighting systems, flight information display systems and rainwater harvesting systems are also installed. The airport will be equipped with air-conditioning, flight information displays, public address, airport access control systems, integrated airport management systems, surveillance cameras and tetra wireless systems. Madarise will award the engineering, procurement, construction (EPC) contract for phase one of the project to its chosen company. The contract includes construction

Northern Airport Project Summary - 2019©

works for the runway, taxiway, apron and other field facilities. The tender for the 1st and 2nd Phase of the project and infrastructure is approximately 10 Bn USD. We will contract with the best available consortium to act as the project consultant, and the engineering consultant. HOK the international design firm who won the bid for the Doha airport of Qatar is our preferred firm for the design of the Northern Madagascar Airport.

Light rail network

operation of the airport and airspace design Capacity and activity forecasts need to assess the airspace implications and air traffic management approaches for the Northern region airspace associated with the development of the proposed Airport. It is important for long term planning that the configuration of the Airport site in Stage 1 does not preclude development in the long term. Therefore, the airfield capacity analysis needs to be based on the long term, parallel runway scenario. This analysis indicates that an airport development at Andrakaka with parallel runway operations could achieve capacity for aircraft movements (landing and departing) per hour in the long term. This would comprise: â&#x20AC;˘landing operations per hour; and â&#x20AC;˘departure operations per hour. The major functional areas of the Airport such as terminal facilities, runways, taxiways roadways and light rails would be designed to accommodate the peak hour passenger or peak hour aircraft demand. The peak hour activity represents the greatest level of demand being placed on facilities required to accommodate passenger and aircraft movements. Consideration of the peak hour activities during planning allows facilities to be sized appropriately so that they are neither Northern Airport Project Summary - 2019ÂŠ

underutilized nor overcrowded too often, and ensures that users consistently receive a satisfactory level of service and are not subject to significant congestion. The Stage 1 and long-term capacity requirements for the proposed airport, based on the indicative activity forecasts and the expected peak hour activity, should be presented in airport layout and would be designed so as not to preclude future works to accommodate expected long-term capacity requirements. The volume and profile of passengers using the proposed Northern Airport is expected to evolve over time in response to growing demand and relative market position. It is expected that in the early years around 80 per cent of passenger demand at the proposed airport would involve regional and domestic travel. Domestic demand is likely to be focused on travel between the main towns. Over time, it is expected that demand would grow, particularly in international passenger movements. It is expected that the proposed Airport could serve approximately one million annual international passengers by 2030, growing to approximately 7 million annual passengers by 2050. By this time, the domestic/ international split could be approximately 40 per cent domestic and 60 per cent international. In the long term, the proposed Northern Airport is expected to serve all types of aviation traffic including low cost carriers, full-service carriers, international, domestic, connecting and regional traffic. Freight aircraft are also expected to operate at the proposed Airport, with the site able to accommodate approximately 3,500 dedicated freight air traffic movements in 2030, increasing to 15,000 air traffic movements in 2060.

Airport right on the sea Northern Airport Project Summary - 2019ÂŠ

7. COMMUNITY CONSULTATION The Malagasy Government and Madarise are eager to provide multiple opportunities for the community in the greater Diana region and the city of Diego to offer feedback on the proposed airport. In addition to consultation undertaken throughout 2019, the Malagasy Government together with the Madarise team will conduct research into community and stakeholder views on the project. The stakeholders and community consultation activities will be undertaken during the preparation of the draft EIA. The principles for the engagement process will be guided by the Core Values and Code of Ethics of the Public and Private Participation and Partnership. A summary of typical questions from the community are provided below. typical questions are: •Will the proposed airport operate 24 hours per day? •What will be the location of the flight paths over North Madagascar? •How high will the aircraft be? •How will the proposed Airport impact the northern highway project? •What will happen to the current rural lifestyle? •How will public transport connect to the Airport? •Will local roads be upgraded as part of the Northern Airport project? •Will there be an impact on property prices in the region? •Will the cumulative impacts of the proposed Airport and surrounding projects be evaluated? •When will construction and operation begin? •What new jobs will be available in Northern region? •

Is there a real benefit of having an Airport in the North?

• Is there the potential for increased tourism in the greater Diana region and the North and broader Madagascar? issues of concern to the local inhabitants: •

the changing face of the Northern region;

•

proposed flight paths and noise impacts;

•

potential for increased pollution levels in the North;

Northern Airport Project Summary - 2019©

•

impacts of the Northern Infrastructure Plan;

•

local traffic and transport changes;

•

employment opportunities from the proposed Airport; and

•

operational issues.

The suite of planned consultation activities to take place during the public exhibition period for the draft Airport Plan need to be designed to reach the broader Northern community. Events such as local drop-in information sessions, community market pop up stalls, static displays as well as printed material including summary documents, fact sheets, newsletters and other relevant documentation.

The town of Diego 8. IMPROVEMENT IN THE NORTHERN INFRASTRUCTURE With the construction of the major northern highways of 1100 kms from Tana to Diego, the 200 Kms from Diego to Nosy-Be on the west coast and thirdly from Diego to the east coastal town of Sambava 450 Kms this represent a significant amount of road improvement works as proposed in the Madarise infrastructure plan in its development initiative, not withholding the upgrades of the northern priority routes to match the regional development.

These are expected to provide sufficient capacity to cater for the expected passenger and employee traffic demand associated with the proposed Airport. The public transport, light rail and rapid train railway systems will render fluid the traffic. The long-term development plan has made provision for an extension of the Northern Rail Link to the Airport site. biodiversity Previous activities at the Airport site including agriculture, light commercial and building demolition mean there is potential for contaminated land to be present. Any contamination discovered during construction would be managed and mitigated to make the land suitable for its intended use and to prevent impacts on human health and the environment. The potential impacts of the operation of the Airport are typical of a large-scale infrastructure project and would be managed with the implementation of stormwater, erosion and dust controls and adherence to industry standards for the storage and handling of chemicals. Sewage would be treated and irrigated in accordance with an irrigation scheme that maintains the receiving soil in a stable and productive state. surface water and groundwater Site preparation and construction of the Stage 1 development would transform the Airport site from a rolling grassy and vegetated landscape to an essentially built environment with some landscaping. These changes would alter the catchment areas within the Airport site and the permeability of the ground surface, which would in turn alter the duration, volume and velocity of surface water flow. Water would be utilized during construction for soil conditioning and dust suppression. Water supply options include water reticulated to the site from existing major utilities and extraction from existing surface water resources. The design of the Stage 1 development includes a drainage system to control the flow of surface water and improve the quality of water before it is released back into the environment. This drainage system comprises a series of channels and basins to collect and treat flows prior to release to receiving waters. The assessment indicates that this system would be generally effective at mitigating flooding and water quality impacts. The transformation of the Airport site would alter groundwater levels and recharge conditions through an increase in impervious surfaces. Bulk earthworks and excavations at the Airport site would also receive some groundwater inflows, which would require management during construction and operation. Impacts on groundwater levels, including impacts on dependent vegetation or watercourses, would be unlikely to be significant given the existing low hydraulic conductivity.

Northern Airport Project Summary - 2019ÂŠ

planning and land use To enable the development of the proposed Airport, existing rural residential, agricultural, recreational, community and extractive industry land uses on the Airport site would be removed. Surrounding land uses could be expected to transition from rural to urban both as a result of Airport operations, and as strategic land use planning takes effect. Infrastructure improvements to main roads and railways tracks would also facilitate land use change in the region. Measures to manage land use and planning impacts are proposed, including mitigation measures for employment land use conflict, zoning rationalization, operational airspace controls, aircraft noise and infrastructure corridor protection. The successful implementation of these measures would lead to the Airport and its surrounds becoming a focus for employment generating land uses in North Madagascar, creating jobs for the new residents of the greater Diana Growth Region.

airport terminal and refreshment area social The Northern Region is diverse, closely populated with urbanized areas, to semi-rural, rural and recreational/natural areas. Many areas of the region are culturally diverse, with strong heritage values (both Malagasy and European). The major employment, residential and transport infrastructure projects proposed for the Northern Region demonstrate the critical role of the region in Madagascarâ&#x20AC;&#x2122;s future. Northern Airport Project Summary - 2019ÂŠ

These projects will support the proposed Airport, which is recognized as a significant catalyst for increased and faster growth for Northern Region, and for Greater Diana more broadly. These projects, along with the proposed Airport, have the potential to bring significant change to the people and the economy of the North. economic The construction and operation of the Stage 1 development is expected to have significant benefits for the economy of Northern Madagascar. During the busiest periods of construction, up to 6000 full-time equivalent jobs are expected on the airport site. Based on this number, the multiplier effect is expected to generate a further 6000 jobs per year across the Diana region. Once the proposed Airport is operational, Northern Madagascar is expected to experience an increase in employment driven by improved access to workers and other businesses. Manufacturing and consumer service sectors would see the largest changes due to improved accessibility. These benefits will increase significantly as the Airport develops in the decades ahead. There is expected to be a significant increase in population near the Airport site of up to ten per cent due to an increase in employment opportunities. However, there would be some negative economic impacts in the immediate vicinity of the Airport site due to a combination of the Airport development and the changing land uses. The expected population increases would be likely to reduce with distance from the Airport site. resources and waste Construction of the proposed Airport would involve clearing and a major bulk earthworks program to achieve a level surface suitable for the construction of Airport facilities, along with the use of a range of construction materials. As with any large infrastructure project, the construction and operation of the proposed Airport would involve the consumption of natural resources and has the potential to generate substantial quantities of waste. During the initial Airport operations, an estimated 3 to 5 thousand tons of waste would be generated each year, and would include general waste, food, packaging waste from terminals and waste oils, paints and cleaners from maintenance activities. Resources and waste from the Airport should be sustainably managed by maximizing waste avoidance, reduction, reuse and recycling (in accordance with a waste management hierarchy), while mitigating and managing impacts on human health and the environment. A waste management plan would be prepared prior to construction and operation of the Airport, which would guide the management of waste during construction and operation.

Northern Airport Project Summary - 2019ÂŠ

long term airport strategic environmental assessment A strategic level assessment of the long-term development of the proposed Airport will be provided in the draft EIA. The strategic level assessment recognizes the uncertainty in predicting impacts that may occur up to 50 years into the future, and the additional approval and consultation requirements for all future development. The assessment approach provides flexibility in the master planning process for the airport site to allow land use changes, technological improvements and changes in operational practices to be reflected in future development scenarios. The focus of the assessment for the indicative long-term development centers on potential impacts of the expanded operations on the amenity of the surrounding community. The key issues to be considered as part of the assessment of the long-term operation of the proposed airport include noise, air quality, human health, traffic and transport, landscape and visual amenity, and socio-economic impacts. Direct physical impacts are also discussed, including those associated with biodiversity, water resources, heritage and planning and land use. traffic The long-term development is expected to result in around 5,000 additional vehicle trips each day. These additional trips would be generated in the context of substantial urban growth forecasts for the Northern Madagascar. Airport-generated travel and the substantial forecast development growth in Diana region would significantly increase demand on roads and public transport. Additional transport infrastructure, including a Light metro and other direct rail link, would be needed to address this demand. 9. SUSTAINABLE JOBS CREATION FOR THE NORTHERN REGION The Northern Airport will be a game changer for jobs in the grater region of Diana. The airport will result in thousands of jobs for the region, and new economic project confirms that the locals of Diego are well placed to benefit from these opportunities.

Northern Airport Project Summary - 2019ÂŠ

In the short term the majority of jobs generated by the Northern Madagascar Airport will be in the construction sector. Electricians, builders, laborer’s, plumbers and engineers will be just some of the occupations that will benefit from the Government’s and Madarise Development Initiative. We forecast an expected 5 B USD investment in constructing the Airport 1&2 phases and another 5 B USD for the new infrastructures development in the immediate region linked to the Airport. Economic analysis shows that each construction job will generate another 2.5 flow-on jobs in supporting industries. While the number of jobs during construction phase is significant, the even bigger prize will come once the Northern Airport is operational. In the early 2030s there are expected to be over 6,000 direct jobs at the Northern Airport – and many more as businesses are attracted to the area. Airports are proven attractors of businesses. Already we have seen significant interest in investing near the Northern Airport. Madarise commitment to the people in the north This presentation summarizes the economic projection g and steps through the jobs required during construction and when the airport is operational, at 2020 and 2030 to 2040. This provides a snapshot of the benefits this significant Government and Madarise investment in North Madagascar. To maximize these benefits, the company building the Northern Airport, will set targets for local workers, apprentices and trainees, Indigenous people and other key groups. The Northern Airport is a game changer for jobs and economic opportunity in the North. We can, and will, build a great Airport. We can do so much more too. Madarise looks forward to working with the people of Northern Madagascar to maximize this opportunity. The North is one of the fastest growing regions in Madagascar and will continue to grow rapidly. With a population of around one million five hundred thousand, the grater Diana region would be Madagascar’s second largest city in its own right. This growth is expected to continue, with between 33,000 to 35,000 coming in the area per year (Statistical Office figures). The Northern region will have another minimum of 700,000 inhabitant’s growth in the next 20 years.

We can therefore expect some 2.5 million people in the region. Infrastructure needs to be planned and built to meet the needs of the growing population. But while the North is growing and emerging as a major economic region, the Northern Region jobs gap continues to slide. The region is experiencing a jobs shortage. If things remain the same, this is predicted to grow to a job shortage of over 1,000,000.

“More jobs are definitely needed closer to home for northern residents.” The new Northern Airport will be a major generator of business growth and will attract investment to the region. The Airport alone will support almost 10,000 direct and some 15,000 indirect jobs in the northern region by 2030 and nearly 100,000 in the long term. With the additional investment the airport will bring to the surrounding region, Northern Airport will be a major catalyst to create jobs and reduce the Northern region’s job shortage. Aviation is important to the growth and prosperity of Madagascar. In fact, the whole transport industry is the growth locomotive. Businesses, tourists and residents rely on accessing fast, efficient transport and aviation services. Northern Airport Project Summary - 2019©

It will be crucial for the people and businesses of North Madagascar to be connected to the Malagasy aviation network. Construction will start in 2020 and the new Airport will open in 2025. Stage 1 of the Airport will have one 3.5-kilometer runway. It will be able to handle the full range of aircraft, including the Airbus A380. Stage 1 Airport will include terminal and runway areas, as well as: • cargo facilities; • dedicated maintenance areas; • a public transport hub; • easy-access parking from the upgraded road network; and • areas set aside for an onsite business park. The airport will grow over time as passenger demand increases. This will include expanding the terminal and other facilities and building a second parallel runway (expected around 2045). jobs in the construction phase The Northern Madagascar Airport will be a major source of direct employment for thousands of residents in a number of new sectors in the region. The Northern Madagascar Airport project comes at a time when the Northern region economy faces a transition. Although manufacturing in north Madagascar is following national trends and is declining, the sector has traditionally been one of the region’s biggest employment sectors. This trend is set to change as construction ramps up on the airport site. The total jobs needed during the construction phase is expected to be 6,000. Initially, the biggest need for jobs at Northern Madagascar Airport will be in construction, supporting over 12,000 direct and indirect jobs. Manufacturing (around 1,000 jobs) and retail (around 1,000 jobs) will continue to be significant employers at the airport and will support construction efforts and workers on site, as will the professional, administrative, transport and warehousing, and financial sectors (around 2,000 jobs combined). The need for construction jobs at the Airport will continue even when construction on the Stage 1 Airport development winds down and the Airport operations commence. As the Airport grows over time, the terminal building and aviation support facilities will need to expand. Continual expansion of the Airport will mean that construction workers will be needed on the Airport site to help meet the demands of the growing Airport.

In addition to ongoing construction needs at the Airport, a number of Greater Diana infrastructure projects, such as the planned Northern Metro and Diego Speed Train railway network reaching to various centers and regions of Madagascar, mean that construction jobs would be available to North Madagascar well after initial construction on the Stage 1 Airport is finished. when construction jobs will be needed To give an idea of when jobs in specific construction areas will become available, it is useful to look at the job mix expected for construction on site. Site preparation activities, such as levelling the of soil to make the Airport site flat, will come first. Construction and engineering jobs for Airport infrastructure will come after, including the construction of runways and roadways and building the terminal, business park and aviation support facilities. Civil engineering encompasses design and construction activities. Contract administration and support services include a range of services to support the construction effort, including installation and finishing. Supervisory and management roles, as well as the construction of aviation terminals and buildings, are included separately. Jobs in the operation phase, 2025 Aviationrelated jobs, such as pilots and crew, engineers and ground staff, will mean new jobs will arrive in the Northern region.

Northern Airport Project Summary - 2019ÂŠ

The onsite business park will attract many different businesses into the area, servicing both the Airport’s needs and enjoying nearby access to the Malagasy’s domestic and international aviation network. People working in manufacturing (1,000 jobs), transport and warehousing (2,000 jobs), retail (1,000 jobs) and accommodation services (2,000 jobs) are all likely to benefit by being close to the Airport. Planning outside of the airport will mean the airport can both support the Northern Madagascar Economy and operate efficiently. The planning initiatives, such as the Greater Diana Priority Growth Area, are will be encouraging new and exciting sectors to the area. These new sectors will translate into a range of new jobs becoming available. Jobs in the aviation sector will continue growing at the airport in its second decade of operation, with demand in the sector reaching around 12,000 jobs. As more kinds of businesses and sectors move into the business park onsite and into the surrounding area, the number of professional, scientific and technical jobs will increase. These new sectors will be part of the diversity and mix of jobs contributing to the operation of the airport. As the area around the Airport grows and attracts more businesses and institutions, the proportion of retail jobs is expected to eclipse manufacturing to become the second largest sector after aviation. Manufacturing jobs will increase to 5,000 jobs—the same as professional and scientific jobs—as the Airport grows to meet the needs of aviation activity by directly supplying airport users such as airlines and catering. business park on the airport site The business park on the airport site will complement Airport operations and expand the range of employment opportunities. It is expected to house substantial officebased employment in professional, scientific and technical services, as well as the manufacturing industry. The diverse industry mix in the business park could also include wholesale trade, information technology and media services, retail, financial and insurance services, as well as education and training services. what’s next? Northern Madagascar Airport is well positioned to match the demand for jobs at the Airport. Preparing, designing, building and operating the Airport project will need workers across a diverse range of sectors, providing an important source of employment closer to where the Diego residents live. The Airport and its business park will create opportunities for local businesses and workers. For each of the job sectors identified, there will be a demand for both skilled and unskilled workers. In the construction phase, there will be a demand for architecture and building jobs, and in engineering and related technologies, with information

technology, management and commerce representing the next largest number of workers.

A priority of the Airport development is to engage and employ residents of the North so they can make the most of the job opportunities presented by the Airport. Jobs at the Airport will be made available to people in the surrounding area and in Northern Madagascar more broadly, ensuring support for the direct job needs onsite and the material needs of the airport construction and operation. Services to support the workers onsite will bring further benefits indirectly to businesses across the North. Coordinating these opportunities will be critical to the Airportâ&#x20AC;&#x2122;s success. The company that will build the Airport, will draw up a Malagasy Industry Participation Plan. The plan will address ways in which local employment and business opportunities can be maximized and must consider local industry participation in the development of the Airport. Targets for local workers, apprentices and trainees, and workplace diversity will also be set. An equal opportunity policy that includes training and suitable employment opportunities for young workers, Indigenous people and people with disadvantages will also be implemented. getting the right skills There is a challenge to ensure Northern Madagascar residents can be equipped with the right skills at the right time for the new job opportunities to come. Broadly, a range of civil engineering, construction labor, management and supervisor, and administration jobs will be needed as soon as construction commences. Study or training through universities, other vocational education institutions provides the

Northern Airport Project Summary - 2019ÂŠ

knowledge and skills needed for the job opportunities to come in the construction of the airport. Studies in architecture, building and construction, engineering, IT, and management and commerce will also be useful to prepare for construction jobs. To help build skills and opportunities for Northern Madagascar residents, the Government and Madarise will open Madagascarâ&#x20AC;&#x2122;s first one-stop shop for infrastructure jobs and skills training to meet the demands of large infrastructure projects underway across Madagascar, and Greater Diana region such as the airport and the Diego Metro. Northern Madagascar residents and beyond need to receive quality training to meet the job needs of the Northern infrastructure projects.

10. CONCLUSIONS The proposed airport would be developed on Government-owned land at Andrakaka in Northern Madagascar would cater for ongoing growth in demand for air travel, servicing both domestic and international markets. Development of the proposed Airport would be a catalyst for investment and job creation in the region by accelerating the delivery of important infrastructure and the release of employment and housing land, and providing a long term and diverse source of local jobs and economic activity. Additionally, the proposed Airport would improve access to aviation services for the growing population in North Madagascar. A draft Airport Plan will be developed to provide the strategic direction for development of the proposed Airport, forming the basis of the authorization for the project under the Airports Plan. The draft Airport Plan includes a specific proposal for Stage 1 to establish the proposed Airport with a single 3,700-meter runway on a choice orientation and Northern Airport Project Summary - 2019ÂŠ

aviation support facilities to provide an operational capacity of 5 million annual passengers as well as freight traffic. Mitigation measures will be proposed including the need for further design, both for the Airport site and airspace operations, to reduce these potential impacts during construction and operation. The environmental performance of the proposal would be managed through the implementation of environmental management plans and monitoring programs. This would aid in ensuring compliance with relevant legislation and any conditions set out in the Airport Plan.

Northern Airport Project Summary - 2019ÂŠ

NORTHERN MADAGASCAR AIRPORT PROJECT OWNER: Madarise Development Holdings ltd.

www.madarise.com info@madarise.com

CONTACT PERSON : Dr. Harley J. Ithier

FUNDING AGENCY: Ryan Project Funding www.ryanprojectfunding.com robert@ryanprojectfunding.com

CONTACT PERSON : Robert Ryan, CEO