CAM Macau International Airport

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1 UPDATED ON 26 JANUARY 2018 CAM Macau International Airport Request for Proposal No. PTB201702R Duty Free Services Subconcession at Macau International Airport Answers to Questions Received before 1700 (Macau local time) on 16 January 2018 Q1. Would it be possible to share (1.1) sales information for the current operation break down by category? (1.2) Sales split between the dual operators? (1.3) Average transaction and total number of transactions for 2015 to 2017? A.1 The following Sales by Category of the Dual Duty Free Operators are provided for reference only. MIA DUTY FREE SALES BY CATEGORY OF THE DUAL OPERATORS Liquor &Tobacco 46% 43% 45% General Merchandise 20% 23% 21% Perfume & Cosmetic 29% 28% 29% Watch Jewellery 5% 6% 5% Total Transaction 919, ,000 1,093,000 Sales by Category (MOP) 1.1 Billion 1.1 Billion 1.2 Billion Q2. Can you please clarify the availability of storage space and supporting space in the Airport? Is there any Bonded Warehouse available to the bidders for the Liquor & Tobacco categories inside the Airport as well? A2. Please refer to point 3 of Section B of the RFP - any additional spaces for specific purpose(s) (such as storage, administrative offices, etc.) may be provided to the Subconcessionaire if CAM deems appropriate, subject to availability. For reference ONLY: The Occupancy Fee is at MOP200 per square meter per month plus a Condominium Fee at MOP80 per square meter per month for storage space and supporting space (approximately 109m 2 and 43m 2 respectively). Regarding a Bonded Warehouse, the Subconcessionaire has the sole responsibility to comply with the respective Macau laws and regulations. Q3. When will be the handover date? In which state will the current operator vacate the areas? As regards the store design, after the handover, is it possible to demolish the partitions between the shops and redesign the new shops? It is understood that the total space of the Subconcession will be kept unchanged. A3. As per point 1 (Term of Agreement) of Section C on page 19 of the RFP, the handover is tentatively schedule on 1 April Referring to the 2 nd paragraph of point 5 (Utilities and General Maintenance of Facilities) of Section C on page 21 of the RFP, The subconcession areas will be handed over to the Subconcessionaire on an AS-IS condition. Page 1 of 5

2 The Subconcessionaire is responsible for all build-out within the subconcession area. According to the 1 st paragraph on page 22 of the RFP, All construction/renovation works, including interior decoration in MIA performed by Subconcessionaire should be approved by CAM and Government Authority before commencement. Q4. Your passenger forecast on page 8 of the RFP states that between 2017 and 2019 passengers will reach 7m, with similar forecasts for the periods and Would it be possible specify your forecast by each year? A4. The Macau International Airport Master Plan is published on the website of Civil Aviation Authority; please refer to the following link for details (Please also notice the DISCLAIMER stated on page 8 of the RFP. All Bidders should conduct their own due diligence and make investigation and inquiries as they consider necessary for the purpose of submitting a proposal): Q5. Page 7 indicated Passengers by Country. Our understanding is that this refers to the number of passengers travelling to each of these countries. If this is the case, would it be possible to share information on the nationality by country using the airport? A5. 3,000,000 2,500,000 2,000,000 2,561,355 MIA Passenger by Nationality ,500,000 1,000, , ,132, , ,222 2, , ,234 95,484 66,148 19, ,760 Q6. Will a draft Lease Agreement be made available to bidders? A6. A standard draft Subconcession Contract will be provided to the bidder selected for the purpose of the further negotiation of the subconcession contract upon negotiation stage. Page 2 of 5

3 Q7. We understand that payments to the airport are to be done on a monthly basis; is there a provision for a yearly wash up of sales (i.e. sales pooled together at the end of the year to ascertain overpayments or underpayments of MAG/Variable Concession Fee)? A situation could arise where due to seasonality effects, bad sales in a month or several months render those months at MAG-scenario, which if not offset against combined yearly performance, would drive the yearly effective Concession Fee higher than if the monthly turnovers were pooled within the year. A7. Extracted from the standard draft Subconcession Contract, which is in light with point 2 of Section C of the RFP, for reference only: the aggregate of the Commission Fees of each calendar year is also subject to the respective Minimum Annual Guarantee, which is calculated by multiplying (1) the Minimum Guarantee per Passenger by (2) the total number of Passengers of the MIA, whether Arriving, Departing or in Transit/Transfer, of the calendar year in question. (The number of Passengers shall be according to the MIA s traffic statistics, counted by the Delegated Authority according to its normal practice. For the avoidance of doubt, as the Subconcession Period does not cover the entire calendar years of 2018 and 2023, the actual volume of Passengers registered within the Subconcession Period will be counted for the purpose of calculating the respective Minimum Annual Guarantee of these two calendar years.) If, for a given calendar year, the aggregate of the Commission Fees is less than the Minimum Annual Guarantee, the Subconcessionaire shall additionally pay CAM the difference between the aggregate of the Commission Fees and the Minimum Annual Guarantee upon receipt of the invoice by the Subgrantor. Q8. Will AutoCAD (with sections and elevations) and PDF files of the units be made available to the bidders. A8. Yes, please refer to the AutoCAD file as below (Please note that the AutoCAD file is for reference only, any information stated in the attached AutoCAD file, including but not limited to dimension of the subconcession area, is estimate and subject to actual measurement). Q9. Can a company based in other country submit the proposal in its own name with a right to assign the awarded subconcession to its subsidiary company to be incorporate under the laws of Macau after successful award? Is the Bidder allowed to submit the proposal in a form of consortium? A9. Due to insufficient documentations, we are unable to elaborate the answer in specific; but in general, the bidder should meet the requirement as illustrated in point 4 (Minimum Qualifications) on Section B of page 11 to 12 of the RFP and point 8 (Non-transferability and Sub-granting) on Section C of page 23 to 24 of the RFP. In particular, each Bidder must be a company duly incorporated and existing under the laws of Macau or any other jurisdiction and, in either case, must have been duly registered with both the Macau Commercial and Moveable Properties Registries and the Macau Finance Department. Page 3 of 5

4 The Bidder itself (which should be a company duly incorporated and existing but not any unincorporated consortium) will enter into the Subconcession Contract as the Subconcessionaire if it is selected by CAM, subject to the provisions of the RFP. Q10. Whether required experience in operation at least two International Airports could be two International Airports in the same country? A10. Yes. Q11. Can the Bidder as a parent company refer to duty free shop experience of its subsidiaries in the proposal submission? A11. Please refer to Point 2 (Experience and Qualifications Statement (Annex II)) on Section D of Page 28 of the RFP. Bidders are reminded to provide sufficient information in their Proposal to demonstrate the fulfilment of the Minimum Qualifications stated, with CAM having the right to decide at its sole discretion on the eligibility of any Bidders. Q12. Is the Bidder mandatorily required to attend the pre-bid meeting and site visit to permit to submit the proposal? A12. No, any party who are eligible with the criteria of the RFP could submit a proposal despite of joining any pre-bid meeting or site visit or not. Q13. Is registration with Macau Commercial and Moveable Properties Registries and Macau Finance Department required prior to the proposal submission or after successful award to the Bidder? A13. Prior to the proposal submission. Q14. Please raise an example of an activity or service similar to the activities proposed by the Bidder which CAM might see it hampering the competition on page 12. Whether the existing duty free operator at the Airport in North end is deemed competing with this duty free subconcession? A14. The main purpose is this RFP is to allow dual operators providing world-class Duty Free Services to passengers by offering a wide range of products and high quality facilities and services at MIA. CAM reserves the right to decide at its sole discretion on the eligibility of any Bidders. Q15. Please confirm that apart from the Condominium Fee, there is no other charge for utilities or services to be collected from CAM in respect of the Subconcession area. A15. Point 2 (Consideration to CAM) of Section C on page 19 of the RFP are the fees payable to CAM during the Subconcession period. Please note that there are other overhead costs on a monthly or one-time basis required at the Airport. For example, there is a cost of an access pass for each personnel working at the Airport. Page 4 of 5

5 Q16. As per Section 16 of the RFP on page 31, If the Bidder is a subsidiary of another entity, then the above financial information of the parent entity must also be submitted. By the parent entity, does it refer to the direct shareholder or the ultimate parent company of the bidding entity? A16. Bidder is required to elaborate to CAM about their financial status in which they are competitive to convince the Evaluation Committee according to Section F of page 32 of the RFP. Q17. As per Annex VII on page 42, are Bidder allowed to have TWO authorized persons sign on behalf of the bidding entity? A17. There is no limit on the number of the authorized person(s) representing the Bidder provided that the signatory (-ies) is signing for and on behalf of the Bidder in due capacity with sufficient powers to bind the Bidder. Q18. On page 4 of the RFP, Projected Background MIA and CAM, paragraph 5, it mentions that the passenger terminal building is capable of serving 6 million passengers. Is it the maximum capacity of MIA? Given that under page 5, Traffic Statistics of MIA, paragraph 3, MIA already recorded over 6.6 million passengers in 2016, does MIA have any expansion plan in the next 5 years or buffer capacity to handle the growing volume? A18. The capacity of the existing Passenger Terminal Building is 6 million pax per year. The Passenger Terminal Building North Extension will boost the capacity to 7.5 to 7.8 million pax per year and its operation will be commenced in the first quarter of The Passenger Terminal Building South Extension Project will be kicked off this year and we target to raise the capacity to 10 million pax per year in the middle term. Q19. On page 19 of the RFP, Term of Agreement, it mentions that the term of the Subconcession is targeted to commence on 1 April However, the Notification of Selection is tentatively in March 2018 (per page 10, Schedule) and the contract negotiation/execution will take place in 90 days of the Notification (per page 13, Execution of Subconcession Contract). Can MIA please elaborate more details of the chronological sequence regarding Notification, Contract Negotiation & Execution, Site Handover, Allow Store Renovation Period and Contract commencement (at the point when Occupancy Fee, etc. will start to be payable)? A19. According to point 7 (Execution of Subconcession Contract) of Section B on page 13 and 14, CAM will notify the selected Bidder for the contract negotiation. When both parties reach a mutual consent on the signing version of the contract, the execution of the contract will be activate as soon as the respective approvals have been obtained as per point 15 (Selection and Execution of Subconcession Contract Subject to Approval) of Section B on page 17. Page 5 of 5

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