site.btaSocialist Party Urges Calling Off Concession Procedure for Sofia Airport out of National Security Considerations

Socialist Party Urges Calling Off Concession Procedure for Sofia Airport out of National Security Considerations

Sofia, November 18 (BTA) - The opposition Bulgarian Socialist Party (BSP) urges calling off the concession procedure for the Sofia Airport out of national security consideration. Their call comes four days after the government of Prime Minister Boyko Borissov resigned triggering speculations that major deals planned by the outgoing government, including the Sofia Airport concession, were at risk.

The Socialists argue that calling off the procedure for awarding the 35-year concession is within the competence of the outgoing Transport Minister and his successor in the future caretaker government, and that the concession whould be left to be handled by the next regular government.

Speaking to the press in the corridors of Parliament, MP Zhelyo Boychev said that selling a concession for the airport to a Turkish company was "a national security breach".

He suggested that refusing to cancel the procedure would indicate that the concession was a deal in which "the outgoing government once against betrayed the national interests and that possibly it was the price of the support of Erdogan" for the presidential candidate of the ruling GERB party, Tsetska Tsacheva.

According to unofficial information circulated in the news media, among the candidates for the concession are two Turkish companies: TAV and Limak. The former participates independently and the latter in a consortium with Russia's VTB Capital and the Swiss Fluhghaffen Zurich.

Boychev said that the proposed national budget for 2017 says what is to be done with the proceeds from the airport concession - which explains why BSP are raising the issue during the budget adoption procedure.

The government's idea is 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 and purchase trains.

The government launched the concession procedure in May 2016 but the deadline for submission of offers was extended twice at the request of potential bidders. The date for opening the bids was last set at December 15.

The trade unions of airport workers have protested against the concession plans and low-cost air carrier Ryan Air has warned that the way it is planned, the concession is unlikely to end up in the hands of an owner that will develop the airport.

Commenting the Socialists' demands in the corridors of Parliament, outgoing Finance Minister Vladislav Goranov said that if the planned proceeds from this concession do not materialize, some planned budget expenditures will not materialize either.

"In addition to the effect for the whole transport system from this additional financial resource, I also believe that a new investor will improve the service," Goranov said explaining why the outgoing government insists to have a concession.