site.btaState to Lose Billions from Concession of Sofia Airport - Unionists

State to Lose Billions from Concession of  Sofia Airport - Unionists

Sofia, July 14 (BTA) - The state will lose 2,700 million leva, if it awards a concession for the use of the Sofia Airport, the Podkrepa Trade Union told a news conference on Thursday. They presented their own estimates about the profits from the concession, which considerably exceed the official figures. According to Podkrepa, the expected profits from the concession for 35 years are 2,675,876,000 leva. However, if the airport facility remains state-owned, these profits will be 5,405,155,000 leva, said Todor Mitov, Chairman of the Federation of Transport Workers with Podkrepa.

Podkrepa and the Union of Transport Trade Unions in Bulgaria have sent a letter with these estimates on June 6 addressed to Prime Minister Boyko Borissov, Transport Minister Ivailo Moskovski and Finance Minister Vladislav Goranov. However, no reply has been received so far. The estimated investments are 306,545,000 leva for the period of the concession, but judging from the current financial indicators it has become clear that at least 420 million leva have to be invested in development and reconstruction. The social security contributions and the taxes payable to the National Revenue Agency amount to around 590 million leva, while the net profit will be over 1,200 million leva. These estimates are based on the 2015 figures and do not include any growth. "They give us grounds to believe that there is a corruption scheme for syphoning the state-owned company, which manages the Sofia Airport," said Mitov.

The unionists also voiced concern that the 800 million leva invested in the airport infrastructure will be used by the future concessionaire.

Mitov warned that after the awarding of the concession the state will have to take care of Air Detachment 28 and the Balchik Airport, which are currently supported by the Sofia Airport.