A little-known American company with links to figures close to US President Donald Trump has submitted an initiative proposal concerning the possible concession of Sarajevo Airport. The proposal was reportedly submitted to the Government of the Federation of Bosnia and Herzegovina by AAFS Infrastructure Energy LLC, a relatively new firm registered in the United States, which has in recent weeks expressed interest in several infrastructure projects in the country.
According to details published by local media, the company has outlined a plan to take over the operation of Sarajevo Airport under a long-term concession agreement. The proposal reportedly envisages a thirty-year concession period with the possibility of a further twenty-year extension, during which the investor would undertake infrastructure upgrades and expand the airport’s facilities. Plans discussed in the proposal include the modernisation and expansion of the passenger terminal, improvements to the apron and runway infrastructure, as well as the development of cargo capabilities.
The initiative reportedly includes an investment package valued at around 250 million euros, with the concessionaire committing to increase passenger capacity and improve operational efficiency at the airport. Sarajevo handled a record number of passengers last year and has experienced sustained growth over the past several seasons, with the investor aiming for the airport to handle between three and four million passengers annually. The proposal also reportedly includes a financial model under which the concessionaire would pay around 1% of annual revenue to the government, as well as 7% of EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) as a variable component. However, it would not include a concessionaire fee.
Despite the headline figures, the initiative is currently only at a preliminary stage and does not represent a formal concession tender. Authorities in the Federation of Bosnia and Herzegovina are expected to review the proposal to determine whether there is sufficient public interest to pursue a concession process for the airport. Any potential concession would ultimately require a formal international tender.
Probably a bad deal for the airport but good politically for the country. Let's see what happens.
ReplyDeleteWhy do you think it is bad? 250 million investment is massive for an airport Sarajevo's size.
DeleteWhy would Sarajevo Airport even consider a concession right now? The airport is profitable, traffic is growing and airlines are expanding. It makes no sense to give it away for 30 or even 50 years.
DeleteBecause it does not have the funds to expand infrastructure.
DeleteThank you, USA, you are my best friend.
DeleteYou are the peacekeeper, you are the legend
Yeah, keeping peace in the middle east.
DeleteThat really worked well ..
The Middle East has never been peaceful.
DeleteIt has been - much more than now.
DeleteBefore WWI and finally WWII it was relativly calm for few decades at least.
DeleteBefore WWI and finally WWII it was relativly calm for few decades at least.
DeleteYou mean when the British ruled that place.
Delete1% of revenue and 7% of EBITDA with no concession fee? That sounds extremely low compared to what Belgrade or Zagreb negotiated.
ReplyDeleteIt's a proposal. Negotiations are yet to come, if they even come.
DeleteA company nobody has ever heard of suddenly wants to run the busiest airport in Bosnia. If there is a concession it should be through a serious international tender with experienced airport operators.
ReplyDeleteIt would obviously be a political deal.
DeleteAren't all these deals usually political in our region?
DeleteAren't all the concessions heavily influenced by the respective governments desire to make a deal with France, Germany, Turkey for strategic reasons?
^ true
DeleteIsn't the Transport minister constantly advocating for a concession with American pressure? Is it because of this?
ReplyDeleteYes
DeleteThank you Mr President!
ReplyDeleteMake Bosnia Great Again
ReplyDeleteLol
DeleteWith all the events happening in the world right now i hope this isnt something fishy part of a greater plan or maybe i need to stop being a conspiracy theorist hahaha
ReplyDeleteBut in saying that 250mil investment would be awesome for Sarajevo and Bosnia and Herzegovina as a whole
Maybe a US Air Force base would open in SJJ. Fingers crossed!
DeleteIf they are offering €250 million investment that might actually be beneficial. The terminal will need expansion soon if traffic continues to grow.
ReplyDeleteIf there is a concession process, expect the big players to show up. This company will probably disappear as quickly as it appeared.
ReplyDeleteOr they can outbid the others and win the concession.
DeleteIt would be a hard no for this. Words are nice but....SJJ is at a peak at the moment, to increase the passenger traffic to 3M would completely stop ANY traffic going into town, which already is at a breaking limit. The RWY reconstruction will run at about 85M (which was subject to a tender 6-7 years ago), without any extension etc. ANY concession would be subject to international tenders, with a very strong demand on solving the infrastructure around the airport. Any such move is 5-10 years away. A company just formed and without any experience, sweat dreams. Another fairy dust story.
ReplyDeleteThey will have to submit tender like anyone else. Although I wouldn't trust the US especially a company that has never run the airport concession.
DeleteLol
ReplyDeleteIt's a scam! No one on earth knows this company.
ReplyDeleteSo, they proposal reportedly includes a financial model under which the concessionaires would pay around 1% of annual revenue to the government, as well as 7% of EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) - as a variable component - meaning that can sometimes mean that it can't be recoup in full And when you think of external influences (like weather, war, cancellations, deadlines not met, no credit received, cancel flights etc....). Then, you understand the context and the full story behind. So, with such a minimal percentage suggestsed and no mentioning of late penalties (if their project isn't completed on time, or running behind the schedule- late) - then the concessioner have a duty of care to pay the government a daily fine / penalty of minimum €15,000 a day. In other words, this deal ATM benefits US and I would stay away from it until you renegotiate the real deal!! And you can award contract to famous airports consortium like Swiss, South Korea, or Turkey.just do it. Always remember to look for whats best for Airport and Bosnia first.
ReplyDeletePerhaps they would work to get US flights to SJJ.
ReplyDeleteUnlikely mate
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