site.btaConcessionaires to Invest Over EUR 160 Mln in Plovdiv Airport

Sofia, May 18 (BTA) - The consortium between the Chinese investor HNA Group and Plovdiv Airport Invest will invest double than what was initially planned in the concession, and over a shorter period of time, it transpired from a meeting between Transport, Information Technology and Communications Minister Ivaylo Moskovski and representatives of the consortium, the Transport Ministry reported Friday. According to the concession's initial option, a total of 79,083,000 euro were to be invested over the course of 35 years in Plovdiv Airport. The concession agreement is to be signed after the legal procedures are concluded.

The Chinese investors have familiarized Moskovski with their plans for the Airport's development. They plan on turning it into a serious transport hub with one passenger and two cargo terminals, which will be able to process a large number of trucks. The landing strip will be extended and reinforced and an aircraft maintenance facility, like the one at Sofia Airport, is planned to be built. The Israel Aerospace Industries company has already shown interest in operating the facility.

Moskovski informed the Chinese investors about the plans to connect the Airport to the Sofia-Plovdiv-Svilengrad railway. Construction of the 4-5 km-long railway section could start as early as next year. The Bulgarian Transport Minister has also made a commitment to assist with the extension and overhaul of the road infrastructure leading to the Airport, so that its connectivity with the Plovdiv-Assenovgrad road and the Trakia and Maritsa motorways can be improved. Opportunities for financing under the Juncker Plan will be examined for these projects.

Moskovski noted that this is the first large transport project in Bulgaria to be implemented with the participation of a Chinese company. HNA Group's representatives assured that they will consider cooperating in order to attract other Chinese companies to invest in Bulgaria.

HNA Group is involved in numerous industries including aviation, real estate, financial services, tourism, logistics, and others. Its assets are estimated at USD 145 billion, and the revenue, at more than 90 billion dollars annually. The company employs more than 410,000 people worldwide. HNA Group manages 14 air carries with more than 1,250 aircraft, 13 airports with more than 1,000 domestic and international services, which carry more than 100 million passengers annually.

Each calendar year, the concessionaire will make a payment consisting of a fixed and a variable part. The fixed amount is 600,000 leva (VAT excluded), while the variable amount will be 6 per cent of the total net revenue from all activities for the year, related to the utilization of the site under concession.