A Concession Procedure for Sofia Civil Airport

A Concession Procedure for Sofia Civil Airport

A concession procedure for the Sofia Civil Airport has been announced on 2 July 2018 by the Minister of Transport of the Republic of Bulgaria for designation of a concessionaire and award of a concession for the construction of Civil Public Airport Sofia, which is public state property. The announced concession has an estimated value of approximately EUR 3.9 billion excluding VAT. The term of the concession is 35 years. The concessionaire shall pay the initial concession remuneration that amounts to EUR 281 million excluding VAT. The minimum investment requirement amounts to EUR 600 million for the term of the concession. There is also a requirement for the Concessionaire to build a third terminal within the first 10 years.

Currently, the deadline for investors to submit their offers is 11 April 2019. The last extension was required because of changes in the Bulgarian Concessions Act. Amendments to the law ensure wider competition in the procedure. The amendments clarify the texts on a joint liability, the way of settling disputes between the parties and the grounds for invalidity of the Concession agreement.

It is not disclosed officially who the investors interested in the Concession are, but unofficially, the circulated names include: (i) Manchester Airport Group (which owns and operates Manchester, London Stansted and East Midlands airports); (ii) TAV Airports Holding, where the French Aéroports de Paris Group already has a 46% stake; TAV is the operator of Istanbul’s current large Airport Ataturk and also manages other airports in Turkey, Georgia, Tunisia, Saudi Arabia; (iii) the huge financial and economic Spanish Group Ferrovial; (iv) Russia’s VTB Capital; (v) Switzerland’s Zurich Airport; (vi) Turkish conglomerate Limak Holding and other large international investors.

A concession procedure for the Sofia Civil Airport has been announced on 2 July 2018 by the Minister of Transport of the Republic of Bulgaria for designation of a concessionaire and award of a concession for the construction of Civil Public Airport Sofia, which is public state property. The announced concession has an estimated value of approximately EUR 3.9 billion excluding VAT. The term of the concession is 35 years. The concessionaire shall pay the initial concession remuneration that amounts to EUR 281 million excluding VAT. The minimum investment requirement amounts to EUR 600 million for the term of the concession. There is also a requirement for the Concessionaire to build a third terminal within the first 10 years.

Currently, the deadline for investors to submit their offers is 11 April 2019. The last extension was required because of changes in the Bulgarian Concessions Act. Amendments to the law ensure wider competition in the procedure. The amendments clarify the texts on a joint liability, the way of settling disputes between the parties and the grounds for invalidity of the Concession agreement.

It is not disclosed officially who the investors interested in the Concession are, but unofficially, the circulated names include: (i) Manchester Airport Group (which owns and operates Manchester, London Stansted and East Midlands airports); (ii) TAV Airports Holding, where the French Aéroports de Paris Group already has a 46% stake; TAV is the operator of Istanbul’s current large Airport Ataturk and also manages other airports in Turkey, Georgia, Tunisia, Saudi Arabia; (iii) the huge financial and economic Spanish Group Ferrovial; (iv) Russia’s VTB Capital; (v) Switzerland’s Zurich Airport; (vi) Turkish conglomerate Limak Holding and other large international investors.