Saturday, April 22, 2017

Belgrade Airport concession advances


Twenty-five out of 27 interested parties have qualified to take part in the submission of non-binding bids for a 25-year concession to operate Belgrade's Nikola Tesla Airport. The Serbian government last week extended the deadline for the submission of the non-binding offers. Originally set for April 13, the bidders will now have until May 15 to submit their proposals for financing, development and managing of the airport. "Upon the request of the majority of qualified participants, and taking into account the fact that a vast number of questions have been filed for the clarification of the set requirements, the Public Body has decided to extend the deadline for the submission of non-binding bids. While making such a decision, the Public Body followed the principles of the PPP [Public Private Partnership] Law and specifically, the principle of equal and just treatment and free market competition, so as to allow all qualified participants sufficient time to prepare their non-binding bids", the airport said in a statement. Despite the extension, the selection of the new concessionaire will not be delayed as the state will cut down on the time set to make their decision.

A total of 27 companies have applied to take part in the process, however, two have been rejected since they did not meet the necessary requirements. They are the Shenzhen Airport Group from China and Egis Airport Operation from France. The 25 who have met all the criteria and are taking part in the first phase of bidding are: Terna Gek Terna Group (Greece), Incheon International Airport (South Korea), China National Aero - Technology & HNA Airport Group Consortium (China), Manchester Airport Group (United Kingdom), Airports of Regions Management Company (Russia), IC Altyapı (Turkey), Mitsubishi Corporation (Japan), Hubco Netherlands and Ferrovial Airports (Spain), Eiffage (France), Zurich Airport (Switzerland), Meridiam (France), Vinci Airports (France), GMR Infrastructure Limited (India), Cengiz Holding Consortium (Turkey), Milano Linate (Italy), Strabag (Austria), CEE Equity Partners (Poland), Herbert Smith Freehills CIS (Russia), J&P - Avax (Greece), Fraport (Germany), China State Construction Engineering Corporation (China), Jiangsu Nantong Sanjian Construction Group (China), Mapa Insaat (Turkey), Novaport Invest (Russia) and Promova Limited (Cyprus). Following the submission of their non-binding bids, the state will have ten days to decide who has qualified for the second phase, which entails the submission of binding bids. A total of 75 days have been set for this part of the concession process.

The Serbian Minister for Construction, Transport and Infrastructure, Zorana Mihajlović, said the outcome of the concession tender should be known during the second half of the year. "Our expectations are that in the second half of the year, or the third quarter, we will have a clear idea of whether the submitted offers are such that we can award a concession". She added, "Our goal is to find a partner who is willing to invest based on the strategy and plan drafted by the state which will help us develop the airport into a regional player. The government's vision is for our country to become a transit hub for the region and the first choice for investors that want to put their capital in this part of Europe. Not only does the increased development at Nikola Tesla Airport confirm this, but it also demonstrates the pace at which we are approaching our goal".

74 comments:

  1. Airport wanted to bid for Sava Center ownership. Is Sava Center part of the Belgrade airport concession?

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    1. No. The tender for Sava Centar ownership is ongoing. This concession is officially for the "financing, development and managing of the airport" so even if the airport gets Sava Centar I doubt the concession winner will have anything to do with it.

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    2. If Airport owns both both airport and the Sava Ctr, and airport makes profit but Sava Ctr is a loss maker, will money flow from the airport to the Sava Ctr?

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    3. The airport does not own it, it's bidding for it as part of a consortium of state owned companies. Since the tender for SC has been delayed for two times already, they will probably finish the concession before they conclude that tender.

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  2. Is construction of a new terminal part of the requirment for the tender winner?

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  3. On the pic I see perfect space for a new terminal after the C gates

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    1. That is where future expansion is planned. Also they can add another floor to the current terminals. That was planned by the previous managment that got replaced.

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    2. Where can you see plans for future expansion? Minister talks about government outlined strategy and plans but there is not much detail in the tender documents. Info about requirements for a new terminal, growth projections, rail link or cargo center are not published on the airport tender web site. Is there a secret place where you can get this info?

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    3. Future expansion is planned there with the extension of the C gates. They have already received construction permits but are not starting anything probably because they are waiting for the outcome of the concession.

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    4. That's not the TERMINAL, it's just extension of existing C concourse with four additional airbridges. Where is the place for a new TERMINAL?

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  4. Whoever wins must be responsible to finally fix the taxi driver problem.

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    1. If the state can't fix it, how on earth is a concessionaire going to do it ??

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    2. How? Shoot dead all the bad apple taxi drivers?

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    3. They could arrest them and prosecute them.

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    4. What rubbish are you talking about ?? The govt is not doing this today, so how on god's earth is a comcessionaire going to do it ?

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    5. @Anonymous 10:10 This would be efficent way of solving problem. Many of them deserve this kind of corrective action.

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    6. It is responsibility of the airport operator. Concessionare will have to propose a plan how to deal with this. It has been fixed in many third world countries and it can be fixed at BEG. Airport operator usually enforces it with strong private security. Police is needed only in extreme cases.

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    7. Alen Šćuric PurgerApril 22, 2017 at 7:05 PM

      OK, now I have question how comes that I payed 1800 dinars from airport to hotel (with voucher I get on airport), and same distance back 1500 dinars?

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    8. 300rsd airport tax

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    9. Vouchers are based of flat-rates for different areas, when you hire taxi on meter, it might be less or more depending on distance, route, traffic, driving style, and time of day (night, sunday, or holiday prices).
      http://www.beg.aero/upload/Putnici/2015_flajer_taxi.pdf

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    10. Alen Šćuric PurgerApril 23, 2017 at 9:14 AM

      I don't care about 2,5 EUR, but I looks like airport or some organization make scam in this case. Route was absolutely the same, but on way back I even stop twice for several minutes to buy something. So, it should cost even more.

      It leaves you with taste that it is better to take one of those arm-caching taxis as those vouchers are nothing more but more money to pay!

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    11. Yeah, well they initially also tried to introduce flat rates to the airport, but obviously it didn't work, so they stoped at this Minotaur -- or more like Meduza, since they didn't resolve the issue of illegal cabbies, you can buy rip-off vouchers, and you can also go a floor up and stop a taxi that dropped off someone or use the phone to call one. They should only put a board with all those options somewhere, so you know what you are getting into :D On a serious note, they're so incompetent that it hurts.

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  5. Who is Promova Limited from Cyprus? I can't find anything about them.

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    1. Probably some offshore company. I can't find much about them either except that they were founded in 2011.

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    2. Perhaps Nemjee knows more.

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    3. No idea but that definitely looks like an offshore company. Cypriot law allows you to fully conceal the real owners of a company so we might never know.

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    4. How does the EU allow them to do this?

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    5. It is perfectly legal for you to form a new company (Promova in this case) which has the sole purpose of biding for the airport concession. If and when it wins the bid it can reveal its stock holders.
      It is probably owned by well known businesses who do not want to reveal themselves publicly at this stage of the concession process.

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    6. There is a clause in the Cypriot law that allows the owner of the company to have his lawyers listed as the actual owners while in reality they are just a mask that hides the real face. Even if the Cypriot company was to win the concession (which most likely won't happen) nothing would change. It would still be the lawyers who would be listed as the actual owners at the Belgrade stock exchange.

      If I remember correctly this was introduced so as to allow Israeli businesses to trade with the Arab world via Cyprus. Naturally, over time others have started using it for obvious reasons.

      As for the EU, they don't really care especially since many of its own powerful businessmen are using this 'trick.'
      Not to mention that other EU member states such as the Netherlands, Malta or Latvia have also embraced a similar model of doing business.

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    7. Anon 9:52,

      Cyprus is far from being the only one - or even the most popular - place in the EU where you can do this. Other places where money tracks can be hidden are Jersey, Channel Islands, Gibraltar, etc.

      All possible & perfectly legal under the infamous 'EU rule of law' we keep hearing about on this blog...

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    8. Thanks for the explanation guys. Didn't know this

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  6. Most of the companies taking part seem respectable. I have no idea if the tender will be transparent or they already have a predetermined winner but I hope the one with the best bid wins.

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    1. Most people now think the Chinese (read HNA Group) will win but first everyone was saying how it would be the Arabs, then the French...

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    2. Only a handful of people on here said that the French would get it. I think most people think the Chinese will get it because of so much money they already invested in the country.

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  7. Do they always park that A330 at an angle like that? Sorry just looking at the photo.

    As for the concession I'm not a big fan of the French and Fraport. An Asian bidder would be good.

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    1. Usually. I think it's a way to save space.

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  8. I find Manchester Airport taking part very interesting considering the very low investment from UK into Serbia.

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    1. Agree it's an odd one

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    2. and dont mention the visa

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  9. South Korean transport minister was in BEG a few days ago promoting the Incheon Airport bid. He also said flights from Seoul would start if they win.

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    1. Flights from China make sense. Flights from South Korea really dont.

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    2. I agree but I guess it was supposed to be an incentive for them to choose Incheon.

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    3. Gosh.. Incheon ? That the consistently rannked top 1 or 2 airport in the world sees value and interest in BEG, says alot.

      The fact that the Dep Minister visited this week says even more..

      Fingers crossed that they win !

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  10. Politicians should be sanctioned from using the term "regional hub".

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  11. This is great ...just great to habe 25 biders. Imagine a girl having 25 possible brums...much to take and negotiate...hope BEG will get the best out of this....regards from Ljubljana

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    1. You must have meant the ruling party??

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    2. Anonymous at 10:17 AM
      LOL, probably!

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  12. It's good that there are so many candidates. I guess only 5 or so will have really serious bids but its a good spread.

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  13. Very good list indeed, well done BEG. Seems that Fraport are not giving up. I'm hoping BEG finally gets a rail/metro connection to the downtown. It's one of the very few bigger capitals not having it.

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    1. I agree. It's actually not that difficult to connect it with the city rail line at all.

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    2. Beograd doesn't have a metro system a all, and you speak of a new line to the airport. Not to happen in ten years.

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    3. It has quite a functional suburban railway system that goes through all parts of the city, including two underground stations in the city cener. If they wanted to invest money they could easily extend the line which goes from Batajnica to Ovca (via Zemun, Novi Beograd and Center) to the airport.

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    4. It´s sad because the project was launched in 1974 but never realised. I think a light rail would boost the traffic a lot especially for the Chinese, they can visit downtown Belgrade in less than 30min.
      Or why doesn´t the government use the money from the concession to build it?

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    5. Just look at the railway map on Bueker, the existing railway line is around 2km from the airport.

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    6. Thanks a lot, very interesting! But say this line becomes operational one day, it can follow the Batajnica route to both Novi Beograd and Beograd centar, right?

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    7. The line will go first to Batajnica, where some services can extend to Novi Sad, Subotica, Budapest then to New Belgrade, Belgrade center.

      http://www.bueker.net/trainspotting/maps/beograd/beograd.gif

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  14. There are NOT 25 bidders, most if not all on the list have formed consortium with others on the list, so reality there are not more then 10/11 entities still in the process to submit a non binding offer.

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    1. Which company have formed consortia?

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  15. BEG passenger growth in APR is currently +16%. This will probably come down a point or two by the end of the month but still good.

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    1. Are you sure? Last week a poster wrote that it was going to be 20% increase for April.

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    2. 17% to end of the month

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    3. Anon 15.03

      He posted that it was 20% in the first week or so. Makes absolute sense with Transavia, Atlasjet, New York, Malta, LED...

      However next month we are going to have all these PLUS Wizz Air's second A320!

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    4. Dubrovnik airport in first 17 days of April +43%!!!!!!

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    5. Zagreb airport in April:

      TK for last several days both flights with A321
      LH with A320/A321 instead of A319 for some flights
      Air France A319/A320 instead of A318
      Aeroflot from 1st of May A320
      QR A321
      Air Serbia (yesterday) A319!

      Not my post, from another guy on another forum

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    6. Anon @5PM, also Air Serbia with A330! Lol

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    7. So BEG - 1,4 million
      ZAG - 750,000 ?

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    8. April will be great for DBV, SPU and ZAG!

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    9. Ljubljana today: A321 by Finnair and both Turkish flights ---- very good for April.

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  16. Interesting there is even a company from India!

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    1. It is the same company that along with the Greek GEK Terna Group won the concession to build the new airport in Heraklion.

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  17. What will government do with one time, upfront concession fee? Can they invest it into Air Serbia?

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