Westminster signs off five airport security contract in DRC

Westminster Group PLC (AIM:WSG) said it has ratified a ten-year plus multi-million-pound contract, for security services at five airports in the Democratic Republic of the Congo or DRC.

Contracts were officially signed today during the UK - DRC Trade and Investment Mission, at a formal ceremony in Kinshasa by board representatives of both Westminster and the airport authority, La Regie Des Voies Aeriennes (RVA).

Present were various government officials and dignitaries including Lord Popat, the UK Prime Minister's Trade Envoy; John Humphrey, His Majesty's Trade Commissioner for Africa; HE Alyson King OBE, HM Ambassador to the DRC; and HE Ndolamb Ngokwey, Ambassador of the DRC to the United Kingdom.

Through the contract, Westminster will provide comprehensive ground security operations, initially at four international airports and one national airport in the DRC.

This will include advanced detection, surveillance and screening equipment plus maintenance, training and support.

As part of the programme, Westminster will also establish an aviation security training academy to provide certified training to international standards for all aviation security ('AVSEC') staff.

Westminster added the managed services model it has successfully deployed elsewhere in Africa is the basis of the model.

Revenues will be driven by embarking passenger numbers using the airports and funded by a per passenger fee, denominated in US$, collected through the ticketing system and payable directly to Westminster by the airlines or IATA.

“Based on current international embarking passenger levels, the contract is expected to generate revenues of circa US$10m in the first 12 months of operation,” said the statement.

“In addition, there is an opportunity under the contract for further revenues, in due course, from domestic traffic and cargo screening operations.

A 90-day transition period is included in the contract to allow for operational planning and recruitment processes to be completed with operations to commence formally in July 2024.

Initial funding for the project will be from Westminster's own resources with several options under consideration focussed on project-based debt capital.

Peter Fowler, Westminster's chief executive said: "I am delighted to be able to announce this important new contract during the UK - DRC Trade and Investment Mission.

"The Democratic Republic of the Congo is a key addition to our international aviation security services, and we believe the country has exciting growth potential.

With a surface area equivalent to that of Western Europe it is, by area, the largest country in sub-Saharan Africa, the second largest in all of Africa, and the 11th-largest in the world.

It is also the most populous Francophone country in the world. Air travel is therefore an important and a necessary requirement within this vast country.

DRC is extremely rich in natural resources and has the potential for sizeable economic growth. I look forward to Westminster having a long-term presence in the country and in playing our part in the successful growth and security of the country's numerous airports."

Commenting on the development, RVA Chairman, Prof. Tryphon Kin-Kiey Mulumba, added: "The Government of the DRC and the RVA are committed to creating world-class airport operations within the country, which will create economic benefits for the country and its citizens.

"We have been impressed by the professionalism and expertise shown by Westminster and we see partnerships like this with leading global organisations, as a key part of this strategy."