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Fraport Won Bulgaria's Airports Concession Deal
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Germany's Fraport AG was granted the concession over the operation of the Bulgarian two coastal airports at Varna and Burgas.
The June 15 decision of the Cabinet for the granting of the concession to the German company and Bulgaria's "BM Star" was promulgated in the State Gazette.
Under the 35-year concession agreement the picked candidate will invest EUR 403 M for the modernization of the two airports. Some EUR 215 M will be invested in Burgas airport and EUR 188 M will be used for the modernization of Varna airport.
The concessionaire will make a payment of EUR 3 M and is expected to pay annual fee of 19,2% of the total revenues.
In June 2005 Copenhagen Airports AS signed the 35-year concession agreement with Bulgaria over the operation of the two coastal airports at Varna and Burgas. The deal was challenged by the consortium of Fraport AG and BM Starm, which was ranked second. The court then overturned the decision of the Bulgarian government to grant the concession to Copenhagen Airports AS and ruled that it reviews again the offers. |
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