Fyodorovka project seems increasingly less likely to get off the ground (636 words)

Published: 9/10/2001

The Omsk regional authorities' enthusiasm for the development of Fyodorovka Airport in preference to that of Omsk Central Airport, which recently resulted in efforts by the local government to fire the Omsk Airport's General Director, has been dampened by reports suggesting that, on 24th August, Lenaeroproject, a federal project agency, refused to participate in the development of Fyodorovka Airport, on the grounds that the project was “unpromising”. This leaves the contested project in yet another state of limbo, which is not helped by the state's “You need it, you build it” stance with the Omsk authorities. The confusion was compounded by the official announcement from Lenaeroproject, which stated that it had not turned down the project and denying the reports that it was not convinced by its potential. A spokesman for Lenaeroproject added that the project should be conducted in several stages at less cost to make it more attractive to possible investors. Work on the airport, which is located 40 kms from Omsk, began 20 years ago, but stopped in the 1990s, owing to lack of funds. It was the subject of the recent clash between Sergey Kruglov, General Director of 85% state-owned Omsk Airport that controls both Omsk-Central and Fyodorokova and the regional authorities over the spending of $3.7m on the upgrade of the Omsk-Central runway. Kruglov claimed that the expenditure was essential to keep the airport operational, even if Fyodorokova was to be completed. Any development of Fyodorokova is likely to take a substantial period of time to complete, even if funding is available, given that the site has deteriorated considerably since work was stopped, through theft and general neglect. Currently the cost of making the airport viable is estimated to be Rb 200 ($7 m). This would pay for minor repairs to the airport's fabric, but is still well short of the level of facilities sufficient to attract commercial airlines. This would probably require an investment more in the region of $150m, according to sources. To date, the discussions to raise the finance for the airport from foreign and Russian investors have not been successful, leading to the expectation that the project will fail to move ahead if the federal authorities fail to offer financial or planning assistance. For Kruglov, General Director of Omsk Airport, the basis of payback and time scale for the project is simply too vague to attract investors. This is particularly so when it is unclear exactly how much money would ultimately be required, given that much of the costing for the airport was on the basis of a domestic airport rather than the international facility that it has become. Lenaeroproject was specifically introduced to the project to clarify the requirements and prospects for an international airport at Fyodorokova. As a result, Omsk Central Airport, currently providing cargo and passenger services, seems destined to remain the city's airport for some period of time, but the federal and regional authorities still appear to dislike the concept of developing its facilities, given the severe space restrictions at the site and the inability to build modern cargo and passenger facilities. Their concern is that these shortcomings will severely limit the financial viability of the airport. Safety is also a concern, given the closeness of the airport to the city. This factor was highlighted by the crash of an Il-76 at Irkutsk last year, at an airport in a similar position relative to the city as Omsk. In addition to the Central airport, Omsk also has a facility in the city centre belonging to aerospace producer, Polet, where the prototype An-70 recently crashed on takeoff. The base is also used for testing the re-engined An-2, the turboprop An-3, produced at the plant.

Article ID: 2743