Sofia airport's consultants for reconstruction appointed and disolution of existing development authority expected

Published: 7/28/1999

The international consultants who will work on the reconstruction of Sofia airport have been chosen, according to Bulgarian transport minister Wilhelm Kraus. Irish air operator Ryan Air has been chosen to investigate and develop the financial and commercial management of the airport. The Dutch consortium NACO/SPC has been appointed to: ·develop the reconstruction project beyond the current outline plans ·prepare the package of bidding papers for choosing who will carry out the project, and to ·act as project manager The two consultants were chosen from the 76 participants in the tender process, with 24 involved in the financial and commercial management and 52 in the main reconstruction project. Drawn from short lists of 12 and 18 respectively the two nominated companies must also be approved by the European Investment Bank (EIB), which will finance the first stage of the project. The Bulgarian Government signed a loan agreement with the EIB in September 1997 for the financing the reconstruction and modernisation of Sofia airport. The first stage of the project involves the construction of a new runway, parallel to the existing one and the relocation and reconstruction of the existing runway, as well as the designing and construction of a new passenger terminal for 2.5 million passengers per year. According to preliminary estimates, the project will cost about $200 - $215 million. The EIB's 60 million ECU will be used mainly for the construction of the new terminal. The funding for the extension and modernisation of the runway will come from several sources - $40 million will be provided by the Kuwaiti Fund for Arab Development, the Bulgarian State budget will provide approximately the same sum, and the rest will come from non-budgetary funds, according to the Bulgarian Transport Ministry. Kraus expects the project to receive about 60 million Euros from the structural funds of the EU, which will begin functioning in the year 2000. "The assistance under the European Union's ISPA program will allow the extension, which will raise the runway's category for take off and landing. It will guarantee problem-free landing and take off in bad weather conditions," Kraus said. According to Kraus the existing management structure for the first stage of development of the airport involving the Association for the Development of Sofia Airport (ADSA) owned by Sofia City, Sofia Airport, Glavbulgarstroi and Siemens, would be dissolved. This leaves Siemens the 50.87% shareholder of ADSA through its subsidiary Airsis ATM, out of the first stage of the deal due to its failure meet earlier funding deadlines, which would have avoided a tender process according to government sources. There still remains the possibility of Siemens involvement in a future cargo terminal, which because it does not involve the EIB will not have to be an open tender process. Comments from Kraus suggest however, that the project may go to the Israeli company that has just taken control Balkan Airlines, the Zeevi Holdings.

Article ID: 703