Was commissioned In 2000 Deutsche AeroConsult GmbH (“DACO”), a subsidiary of Fraport AG (Frankfurt Airport) to conduct an investigation into the feasibility of acquiring a concession from the Government of Zimbabwe to manage and operate Harare International Airport and Victoria Falls Airport.
Undertook to perform the following in terms of the consultancy agreement, :
Research and appropriately consider the
possibility of applying a debt for equity swap or similar mechanism to finance the acquisition of the concession;
Detail the salient points of the proposed transaction including the proposed mechanics for a debt for equity swap transaction;
Identify and contact the key monetary and fiscal authorities in Zimbabwe who had the authority to authorize and implement the transaction. In this regard, contact was made with Zimbabwe’s Reserve Bank through the Commercial Bank of Zimbabwe, Ministry of Transport, and the Civil Aviation Authority;
Identify key creditor parties who would be interested in selling their Zimbabwe debt;
Prepare a report on the results of all tasks performed for submission to DACO
The report was submitted to DACO who decided to proceed to the next stage of negotiating the acquisition of the concessions to operate Harare International Airport and Victoria Falls Airport. Entered into mandate agreements with DACO in respect of each airport in terms of ,inter alia, to:
assist DACO in negotiating the acquisition on behalf of Fraport;
advise DACO of the appropriate financial structures; and
provide or procure professional legal advice in relation to the transaction
Commenced with the mandates and took the transaction to the point of obtaining a memorandum of understanding with Minister of Transport that provided Fraport with a period of exclusivity in which to negotiate the transaction. The mandate was suspended by DACO when Fraport decided that the political climate in Zimbabwe had become too unstable.