site.btaTransport Minister Moves for Calling Off Sofia Airport Concession Procedure

Transport Minister Moves for Calling Off Sofia Airport Concession Procedure

Sofia, March 21 (BTA) - Transport Minister Hristo Alexiev has moved for calling off the concession procedure for the Sofia Airport. At a news conference here Tuesday, he said that the decision was based on an analysis, a number of meetings with stake holders and a detailed examination of the concession terms. One of Alexiev's arguments when he submits the proposal to the government next week is that the state interest is not protected.

The concession procedure for Sofia Airport was launched by the government of Boyko Borissov in May 2016 but the deadline for submission of offers was extended several times and was last set at May 19, 2017. The government's idea was to get 500 million leva pre-VAT or more in upfront concession royalties and use the money to repay the debts of the Bulgarian State Railways (BDZ) and purchase trains. The trade unions and the Socialist party have repeatedly argued against the concession. The airport's new management said earlier in March that the financial performance of the airport is catastrophic.

The Transport Minister further explained that the concession offer is not balanced. The terms will result in an increase of airport fees and a loss of passengers. Last but not least, the security factor is underestimated, he said.

According to unofficial information quoted by mediapool.bg, bids for the concession were expected from Limak Holding of Turkey; Russia's VTB Capital and the Swiss Flughafen Zuerich, as well as the operator of Frankfurt Airport, Fraport, which already owns the concessions for two Bulgarian Airport, Varna and Bourgas, jointly with Airport Services Bulgaria. Another likely candidate was TAB, which runs the Ataturk Airport in Istanbul.

Hristo Alexiev further argued Tuesday that it is wrong to address the problems of one type of transport - rail in this case, through another type of transport. "There is a clear plan for the BDZ and the creditors are willing to reschedule their receivables," he added.