‘Cheap as chips’

Zagreb’s new terminal to top 266 million Euros

The first construction phase of the much delayed new terminal at Zagreb Airport should amount to 150 million Euros, Tonči Peović, the airport’s director said. The “Croatian Times” portal reports that the new terminal should be built in 3 phases. During the first phase, a passenger terminal stretching over 40.000 square meters should be built with the capacity to handle 3 to 4 million passengers annually. The building would feature 3 air bridges. If things go according to plan the first phase could be complete by 2015. Peović says that a contract should be signed by the end of the year with a private partner that would build the new terminal.

Once passenger numbers reach five million annually, the second phase of the project would begin. During this second phase the terminal would be expanded with the addition of air bridges to the western side of the building, costing an additional 72 million Euros. Finally, during the third phase, air bridges would be added to the eastern side of the terminal at a cost of 44 million Euros.

How will the finances be secured? Peović suggests that there are several financing options which include the Government, the European Union Cohesion Fund and strategic partnership with a private company. Peović believes that the public private partnership would be the best option. This method has been successful in Croatia so far. It entails a private company footing the bill for a large infrastructure project (in this case the airport) after which it is given the right to run the airport for several decades, taking in all the profits. Afterwards the airport would be returned to the Government.