CATALIST-listed Asia-Pacific Strategic Investments will be operating and managing two airports in Timor-Leste, after inking a cooperation agreement with Francisco Kalbuadi Lay, the country’s vice-prime minister, coordinating minister for economic affairs, as well as minister of tourism and the environment.
This marks the company’s potential entry into the aviation infrastructure sector, and this proposed diversification will require the approval of shareholders, said the company via a bourse filing on Wednesday (Dec 18).
One of the airports is Oecusse Airport, which is an international airport in the Oecusse Special Administrative Region of Timor-Leste, while the other one is Suai Airport in the Cova Lima municipality.
Under the cooperation agreement, Asia-Pacific Strategic Investments will develop and implement procedures to improve safety and efficiency of the airports, manage their staff and service providers, and develop strategic plans to establish the airports as international hubs.
The Timor-Leste government will support the company in obtaining the necessary permits, licences, and regulatory approvals, as well as coordinate with government agencies and stakeholders to ensure smooth operations.
The eventual objective of the cooperation agreement is for both parties to sign a long-term lease agreement, which will allow the company to operate the airports for 30 years.
The Timor-Leste government shall receive 20 per cent of all profits generated from commercial activities related to both airports, while Asia-Pacific Strategic Investments shall be responsible for their financing, development, and operations.
Both parties intend to negotiate and execute the long-term lease agreement within three months after signing the cooperation agreement.
Shares of the company closed flat at S$0.001 on Wednesday.
