China’s HNA to invest €160mn in Bulgaria’s Plovdiv Airport

China’s HNA to invest €160mn in Bulgaria’s Plovdiv Airport
Plovdiv International Airport
By bne IntelliNews May 20, 2018

A consortium of China’s HNA and Dutch-registered Plovdiv Airport Invest BV, which has won the tender for a 35-year concession of Bulgaria’s Plovdiv Airport, will invest more than €160mn in the airport, the transport ministry said on May 18.

Bulgaria launched a tender for the concession in January 2017. HNA-Plovdiv Airport Invest was one of three bidders along with a local consortium called Consortium Plovdiv Airport and including Trakia Economic Zone (TEZ) and major Bulgarian road transport firm PIMK, and another consortium led by a company of the Swiss investor Urs Meisterhans.

Initially, the consortium has pledged to invest at least €79.1mn within five years after the concession deal is signed, including on repairs, rehabilitation and maintenance of existing infrastructure and new construction. At a May 18 a meeting between HNA’s representatives and Bulgaria’s Transport Minister Ivaylo Moskov, the company said it will increase the sum and will invest it over a shorter period, the ministry said in a statement, but did not provide further details.

Bulgaria will charge no fee over the first four years of the concession. After that the consortium will pay a fixed fee of BGN600,000 along with 6% of annual net revenue from airport’s operations.

HNA Airport Group is part of a consortium with Dutch-registered Plovdiv Airport Invest. The Chinese company is the third largest airport investment management group in China and runs 16 airports.

Plovdiv Airport is a regional airport located 12 km southeast of the country’s second largest city of Plovdiv in southern Bulgaria. The runway has a length of 2,500 m and its width is 45m. Plovdiv Airport is located 130 km from the capital city Sofia.

Related Articles

Bulgarian president slams government over corruption

Bulgarian President Rumen Radev accused the government of precipitating the “collapse of the state” through its failure to combat corruption in a televised speech on February 4.  Radev ... more

Shortlisted candidates ready to file bids for Bulgaria’s Belene nuclear project, energy ministry says

All shortlisted candidates are ready to file binding bids in the tender to select a strategic investor for the construction of the Belene nuclear power plant, the ... more

Bulgaria’s government survives fourth no-confidence vote amid protests

Bulgaria’s government survived its fourth no-confidence vote on January 29, as expected, after being backed by the ruling coalition and two other small parties. The motion was filed earlier in ... more