Bulgaria picks Munich airport consortium to run Sofia airport (updated)

Copenhagen Airports A/S

17/07/2019 13:57

(Adds details, background)
    SOFIA, July 17 (Reuters) - Bulgaria has picked a consortium
comprising asset manager Meridiam and the operator of Munich
Airport to run and operate Sofia Airport, the Balkan country's
main air transport hub, the transport minister said on
Wednesday.
    In a televised statement, Rosen Zhelyazkov said the
consortium, named Sof Connect, had won the tender for a 35-year
concession for the airport over four other contenders after a
special commission at the ministry evaluated their bids.
    "The commission has taken into account the credibility and
the sustainability of the offered model for the airport's
development that include financial and business models,"
Zhelyazkov said.
    The consortium, which includes the operator of Germany's
second biggest airport, has offered an annual concession fee of
24.5 million euros ($27.47 million) or 32% of annual revenues.
It has also pledged to invest 608 million euros in the airport.
    Bulgaria had been looking to secure about 550 million euros
from the deal, including fees of 7.7 million euros a year, plus
a 280 million euro upfront payment.  urn:newsml:reuters.com:*:nL5N22L4HB
    It also asked for an investment of 600 million euros to
cover the building of a third passenger terminal and other
things.            
    A consortium led by France's Aeroports de Paris (ADP)
 ADP.PA , which had offered the highest concession fee and
investment of 903 million euros, was ranked second. 
    Other bidders included Germany's Fraport  FRAG.DE ,  
Britain's largest airport operator, Manchester Airports Group,
in a tie-up with China's construction firm BCEG, and a tie-up
between Copenhagen Airports  KBHL.CO  and SSB Sauernwein &
Schaefer.
    Zhelyazkov said all bidders have been informed about the
decision, which can appealed within 10 days before the
competition regulator.     
 
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 (Reporting by Tsvetelia Tsolova; editing by Jason and Catherine
Evans)
 ((tsvetelia.tsolova@thomsonreuters.com; +359-2-93-99-731;))