Build-Operate-Transfer Model Adopted in Landmark Aviation Security Deal with Cambodia’s State Secretariat of Civil Aviation

Cambodia Investment Review

In a move that signals a commitment to elevating aviation security, a pivotal Public-Private Partnership (PPP) contract was recently formalized. The deal aims to bolster security measures across international airports in the Kingdom of Cambodia formalizing a Build, operate, transfer (BOT) business model by Albans Management and creating Security Aviation Kampuchea (SAKAM).

The event was presided over by His Excellency Dr. Mao Havanall, Minister in Charge of the State Secretariat of Civil Aviation and H.E Sinn Chanserey Vutha Undersecretary of State and Official Spokesperson for the State Secretariat of Civil Aviation (SSCA).

H.E Dr. Mao Havannall Minister in Charge of State Secretariat of Civil Aviation.

In his remarks, Dr. Mao Havanall expressed gratitude towards Prime Minister Hun Sen and His Excellency Kethe Tesa-pibal Bandith Hun Manet for their role in facilitating the partnership. He described the agreement as aligning with Cambodia’s vision for economic prosperity by 2030 and achieving high-income status by 2050.

Creation Of an Aviation Security Academy

Under the contract terms, a new aviation security services company, Security Aviation Kampuchea (SAKAM), will be established by Albans Management SA. This company is designated to provide aviation security services at five international airports in Cambodia, including those in Phnom Penh, Siem Reap, Sihanoukville, and Koh Kong Province. Additionally, the contract allows for the inclusion of future airports.

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The contract will be implemented through a Build-Operate-Transfer (BOT) model, encompassing the design, financing, building, operation, and maintenance phases for a period of 15 years, after which control will revert to the State. Among the technical aspects, the focus will be on human resource development, provisioning of modern security equipment, and the creation of an Aviation Security Academy.

Mr. Raphael Albaladejo, CEO of Albans Management SA.

Financial oversight for this partnership will be conducted under Cambodia’s recently enacted PPP law, which came into effect in November 2021. Dr. Mao Havanall noted that the application of this law aims to protect the financial interests of the Kingdom of Cambodia as well as those of the end-users. Revenue generation is expected to occur through various security fees applied to passengers and freight, with a fee discount specifically designed for Cambodian nationals.

Creating Approximately 2,000+ Jobs

In terms of socio-economic impact, Dr. Mao Havanall indicated that the project is slated to create approximately 1,400 direct jobs and an estimated 600 indirect jobs in its initial phase. Furthermore, the partnership is expected to open the Cambodian sky to new airlines, thereby enhancing tourism and business activities.

Regarding the regional implications, the contract has provisions for the establishment of a specialized dog training center. Shivam concluded, “This training center is expected to elevate Cambodia’s standing in advanced aviation security within the ASEAN region.”

H.E Sinn Chanserey Vutha, undersecretary of state and official spokesperson for the State Secretariat of Civil Aviation (SSCA).

The Public-Private Partnership between SSCA and Albans Management SA marks a substantial step in Cambodia’s pursuit of enhanced aviation security, improved international compliance, job creation, and overall economic growth. With a balanced approach in technical, financial, and socio-economic terms, this contract aims to serve the multifaceted interests of the Kingdom of Cambodia.

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