The Ukrainian government has included Boryspil International Airport to the list of state-run companies that are to be transferred to concession at tenders, reads a report of the Infrastructure Ministry on Thursday.
The report says that Ukrainian Premier Mykola Azarov signed the relevant resolution earlier.
“Boryspil airport will be transferred into an international hub: a
professional operator with international experience will be attracted
for this,” the ministry said.
According to the government’s decision, the key task of the
concession is to settle some problems of the airport linked to the level
of servicing of passengers and airlines, provide for effective
management of the airport and create conditions for the increase in
passenger flow.
According to the resolution, the concessionaire will be selected at
an open tender. The government ordered the Infrastructure Ministry to
draw up the conditions of the tender. The concessionaire is to provide
for the increase of the level of overland service, the efficiency of
staff operations, and retaining all jobs and social guarantees. The
cabinet will determine the winner of the tender.
“The advantage of this form of operation is that the airport remains
in state ownership, while a private investor takes on an investment
burden. It’s very important for Boryspil airport – as everything that
was built for Euro 2012 was mainly built using borrowed funds,” reads
the report, citing Deputy Infrastructure Minister Dmytro Demydovych.
He said that the concession mechanism allows public private partnership projects to be efficiently realized.
“If the state determines the policy of the airport’s development in
the future, while a private investor invests, this is a very strong
tandem,” he said.
According to the conditions of the tender, the future concessionaire
of the Boryspil airport is to service credits worth over $600 million
and invest over $100 million in the expansion of terminal D with the
construction of a transfer zone and a terminal section for servicing
domestic flights, and in two years the concessionaire is to invest at
least Hr 2.3 billion (around $280 million).
The Infrastructure Ministry believes that it is better to transfer
the whole properly complex to concession, and not only some of property.
“I think that after the concession tender a proper investor who has
experience in managing similar projects and will be able to realize
those strategic plans, which the Infrastructure Ministry composes, will
be selected,” Demydovych said.
As reported, Infrastructure Minister Borys Kolesnikov earlier said
that a tender to transfer Boryspil airport to concession could be held
in October-November 2012.
