Belgrade concession bidders outline plans

Several of the four consortiums and one company that have qualified to bid in the second and final phase for the 25-year concession to operate Belgrade Nikola Tesla Airport have briefly outlined some of their plans. According to the Serbian government, the non-bindings offers received during the first phase of the bidding process have exceeded expectations and are eight times higher in value than anticipated. Serbia, which has an 83.1% stake in the airport, expects the upfront payment for the deal to be worth around 400 million euros. China's HNA Airport Group, which is bidding jointly with subsidiary Hainan Air Travel Service, as well as China National Aero Technology, is still believed to be the front runner.

Qualified bidders

As part of their plans, the Chinese intend to invest on several fronts, including infrastructure development, which would be dedicated to China National Aero Technology, while Hainan Air Travel Service would be tasked with pulling in a significant number of Chinese tourists to Serbia and devising a wider investment strategy for tourism development across the country. The HNA Group also plans to establish and run a pilot training centre. On the other hand, Incheon International Airport Corporation with its Turkish partner plans to expand the airport's capacity as quickly as possible. "We are formulating a strategy to develop Nikola Tesla Airport into the main international hub in the Balkans. We want to expand capacity as quickly as possible. The average annual passenger growth rate at Belgrade Airport is 7%. Based on that, we want to formulate a high-quality plan that will expand the airport in line with growth, while at the same time offering comfortable and seamless travel for all passengers", representatives from South Korea said. They would also evaluate the possibility for the introduction of nonstop flights between the two countries. The South Korean and Turkish duo also bid in Zagreb Airport's concession process several years ago.

Shares in India's GMR Infrastructure touched a 52-week high yesterday after it was announced that its bid for Belgrade Airport had advanced. The Indian infrastructure conglomerate, with interests in airport, energy, transportation and urban infrastructure, has teamed up with GEK Terma from Greece following their successful bid to develop, operate and manage the new international airport in Heraklion. After their meeting with officials from the Serbian government earlier this May, it emerged that GMR itself would be responsible for building new and updating existing infrastructure at the airport, while GEK Terma would formulate a profit-making strategy and be involved with the managerial side of the business. Meanwhile, the Franco-Swiss bid, comprised of Meridiam, Eiffage and Zurich Airport aims to "expand and improve the airport’s infrastructure to achieve its maximum growth potential by utilising the best management practices", EX-YU Aviation News was told in a statement. The consortium's mission will be to offer "best quality services to passengers, airlines and other stakeholders".

The five entities now have 75 days to formulate their binding bids. Besides a financial offer, they will have to submit a market tactic development strategy, a detailed airfield development plan, terminal development concept, a capital expenditure plan, as well as a business and operational plan, to name a few. The Public Body overseeing the concession process will then score each category out of ten and will have thirty days to announce the winner. It reserves the right to extend deadlines for the submission of binding bids at any time. The Serbian government has said it expects for the entire procedure to be completed, and for the deal to come to a financial close, by year's end.

Score sheet - phase two