During 1999 and 2000 Fraport were considering an investment in a project to convert the Homestead Airbase in Miami, Florida to a combined military and civilian use airport that could act as a reliever airport for Miami International Airport. In 2000 Fraport acquired shares in a SPV and entered into an agreement with the developers of the project that regulated how the project would be developed and funded. In terms of this agreement Fraport had a window of 30 days during which it was able to withdraw from the project.

Fraport requested DACO to conduct a due diligence with a view to determining whether it should proceed with the project or not. Appointed by DACO to assist in conducting due diligence examination. The deadline for completion of the examination was 12 days in order to allow sufficient time for Fraport to convene a board meeting to consider the report and to make an appropriate decision.

Responsible for the following areas in the due diligence examination:
• Review of the financial model prepared by Fraport considering:
o Traffic forecast assumptions
o Aeronautical revenue tariffs assumptions
o Non-Aeronautical revenue assumptions
o Operating expenditure assumptions
o Capital expenditure assumptions
o Maintenance expenditure assumptions
o Financing assumptions and project bankability
• Preparation of a revised financial model and scenario analyses
• Review of the transaction documentation considering:
o Property title and the existence of rights to convert the air base
o Corporate structure
o Funding and financing arrangements, including project bankability
o Regulatory framework including FAA licenses, governmental approvals and ICAO standards
o Background to the developers and credibility
o Ability of the SPV and its consultants, contractors, advisors and shareholders (the developers) to deliver the planned project
o Impact of environmental issues on the project
o Status of internal approvals for the project
o Contractual framework
The due diligence examination was completed in time with a recommendation that Fraport do not proceed with the project. Fraport accepted this recommendation and the project was terminated.