Four consortiums and one company are drafting their final offers for a 25-year concession of Belgrade Nikola Tesla Airport. They are stepping up their lobbying and presenting their development plans to the government ahead of the October deadline for the submission of binding bids. Last week, the President and CEO of the Incheon International Airport Corporation, Chung Il-young, met with the Serbian Minister for Construction, Transport and Infrastructure in Belgrade to discuss the concession. "Through these talks, we were able to familiarise the Minister with our operational know-how, which has made Incheon international Airport one of the best in the world. If this acquisition is successful, we will continue to expand our overseas airport investment portfolio in places such as Sanya (China), Eastern Europe and the Middle East", Mr Chung said. Incheon Airport is bidding as part of a consortium togeather with Turkey's Yatirimlar ve isletme and Russia's VTB Capital Infrastructure.
The Vice President of China's HNA Airport Group, Wang Hexin, said in an interview last week that the company is drafting a final pitch for Belgrade Airport jointly with the AVIC International Holding Corporation and the China-Central and Eastern Europe Investment Cooperation Fund. "HNA is actively carrying out the country's Belt and Road initiative with overseas airport construction and investments", Mr Wang said. Last Wednesday, HNA closed the acquisition for an 82.5% stake in Germany's Hahn Airport near Frankfurt, which it bought for 15.1 million euros from the federal state of Rhineland-Palatinate. Others bidding for the Belgrade Airport concession include a consortium made up of France's Meridiam, Zurich Airport and France's Eiffage, followed by the consortium consisting of India's GMR Infrastructure Limited and Greece's Terna, as well as a stand-alone bid by France's Vinci.
Belgrade Airport recently announced it was extending the bidding deadline by a month from late September until October 23, due to requests made by the participating parties. "Having in mind the amount and complexity of the documentation made available to the qualified bidders in the virtual data room, and bearing in mind that they have formed consortiums, the Public Body has decided that the deadline for the submission of binding offers should be extended so that all qualified bidders have sufficient time to analyse all available data, procure necessary financing and submit adequate applications for their binding offers", the airport said. Under the new timeframe, a winning bid is expected to be selected in December and the deal to be brought to a financial close by March 2018. "The final concession agreement will be fine-tuned to reflect the content of the selected bid, in particular the financial and technical parts of the selected bid", the airport said. The government anticipates that the airport could fetch up to 500 million euros, as an up-front payment, which would be followed by a yearly concession fee.
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"The final concession agreement will be fine-tuned to reflect the content of the selected bid, in particular the financial and technical parts of the selected bid"
Pretty good and high quality bidders. May the best one win.
so, once the government accepts one bid the draft agreement will be changed to reflect the particularities of the bid (upforont payment, yearly payments, who needs to build what. some specific obligations of the state or obligations of concessionaire tied to the bid, and so on...
hope that helps explaining
Pozdrav iz Sidneja.
Rodney.🇷🇸🗺🇦🇺😀🌐
The fact that foreigners performed so well goes to show the potential of the local market, especially as the economy starts to stabilize. Let's see how both QR and FZ perform this winter. With JU suspending AUH, EY is slowly becoming irrelevant on the market.
Also, Serbia has been heavily promoting itself in China. It's not just Hainan doing the job.
If the Russians win, they will build it.
Gross profit 13.7 miilion
Incheon Airport is bidding as part of a consortium togeather with Turkey's Yatirimlar ve isletme and Russia's VTB Capital Infrastructure.
The principal reason for concession is to stop meddling of politics and party employment, which doomed Telekom.
With Russians, Turks or Chinese political influence would continue and Serbian national interests would take a backseat.
Hope that Zuerich consortium or Vinci will be chosen.
Of course they are keen. They are in the last 5!
http://i.imgur.com/eI5pqOv.png
BEG Operating profit:
2013 eur 16.5m
2014 eur 29.6m
2015 eur 30.3m
2016 eur 29.2m
AirSerbia donations (2013-2016): eur 164m
- Chinese have Maribor.
- Changi Airport Investments has 20% stake in Budapest
SVO-BEG SU A321
MUC-BEG LH A320
STR-BEG EW A320
IST-BEG TK A321
Plus the scheduled A321 from DOH.
I can't wait to see how they perform this coming winter.
LIMAK built a new terminal, control tower, and runway and taxiway extensions valued at €140m.
They'll operate the airport for 20 years and the Kosovar government will be handed approximately a third of annual profits.
It seems that future expansion, such as lengthening of the runway will be funded jointly by LIMAK and the Kosovar government.
And you decided that because?
Small revenue, and massive profits, that can't be.
Creative accounting very strong....
Most of French debt is privately owned, i.e. banks, corporations and non-gov institutions.
French annual revenue is in the region of €1.1 trillion in tax, only €40 billion goes on paying towards debt repayments.
France is 5th largest economy in the world.
Germany exports €1.6 trillion, its budget is €1.5 trillion, and same as France much of its obligations are long term state bond obligations. The mature over decade or two, and pay out dividend to shareholders.
In short German or French state bonds are like savings in your bank, as secure as things can be secure.
You can't possibly compare Germany, France with Serbia. Serbia don't even issues the bonds, cause no one would buy them.
Massive difference, if France could issue $5 trillion worth of bonds, they'd sell out in less than a week, Same for Germany. This is how most investment banks and investors make money, buy buying bonds and collecting long term interest, which normally is between 2-3%, in high finance you can't get better long term return. Ask any bond trader you'll see.
Zagreb concession was badly done, should have been held again.
Zagreb concession was €343 million for 35 years, with many loopholes and escape clauses that only benefits the investor not the state.
It was done poorly and without a proper oversight. Zagreb was making nice profits before concession was agreed and already had reserve of 250 million kuna for planned new terminal. If government waited and agreed EU funding for the airport, it wold get at least €250 million from the EU with Zagreb raising another €50 millions and airport savings would have added another €50 million easily. Yes new terminal would have been delayed by a year, but we'd end up with the original design.
Original design was 75700sqm terminal, 4 levels, with one underground level where sorting facility is. Underground parking was also planned for 550-700 cars, mostly airport staff and vip.
Planned airport would have had 16 jet-bridges, instead of current 8, 670m long terminal would have had capacity of 10 million.
Sovereign bonds,
https://en.wikipedia.org/wiki/Government_bond
Every country can issue an bond, however it is up to investors to trust that government will repay its obligation at the end when bond matures.
Most trussted governments have high credit risk rating, normally AA ,or AAA. credit rating is issued by companies such as IFC Fitch, S&P, Moody's...
https://en.wikipedia.org/wiki/Credit_rating_agency
In modern time, i/e since 1947, No Western nation has ever defaulted on its Bond obligations. France has maintained triple A or AA+ credit rating for much of past 50 years.
Sovereign or government bond obligations isn't really a debt as more of investment in to a country by small or large investors. This is how banks set their interest rates btw, the rate they can recoup their investments.
If you can buy French bonds or German bonds today, you can count yourself lucky, as both nations do not issue bonds regularly and when they do it is known months ahead, and investors are pilling up.
In fact you'll see major investment banks besieging government finance minister to get first slice at getting the piece of pie.
Recently (2015) when Croatian Government last time issued a state bond, @5.5% insert, 7.5 year maturity, it over over-prescribed 4 times. Croatia raised €1.25 billion, however offers where coming for €5 billion.
When Germany issues a bond, it is often over-prescribed by as much as 8 times in less than a week of being issued. Governments will issue bonds to raise money to finance various projects to avoid increasing the taxes.
However most nations in the world, their bonds are worthless, and could sell only with promise of high interest maturity. Casing point Greece. Greece now can't issue a single bond cause no one would buy Greek bonds, they're worthless, not worth the paper they're written on. Same goes with Russia, Much of Africa or Argentina for that matter.
Good bonds are from stable EU/EEA members (Greece excluded), US, Canada, Mexico, Japan, Australia, NZ, S. Korea, China, ASEAN, Costa Rican bonds are very popular, India, and few other very rich countries.
http://www.marketwatch.com/story/5-countries-whose-bonds-are-safer-than-treasurys-2013-10-09
So if you are looking to buy bonds, this is if you can get them, NZ and Australian bonds are in high demand. Bonds can be bought, just very hard for small investors, you need to buy in chunks of $5 million a bare minimum.
Normally bonds are bought in chunks of €100 million or more, and are in high demand by Corporations who want to secure their balance sheets. Example, Amazon owned by Jeff Bezos has around $50 billion in bonds, Mostly German, Dutch, UK, NZ and Japanese.
Microsoft, Google, Tesla, Facebook, ... all of them collect government bonds like they're collectibles. Any company valued over $5 billion in US, EU, holds at least 1-5% of their total market value in government bonds.
Total market capitalization of every company that exceeds $5bn market value in US alone is over $30 trillion. And btw that is bare minimum. So this is bit of education for you. In case you think this is hogwash, ask any economist in Serbia who deals with international markets on a daily basis, as bank economist or analyst and they'll tell you this in clear Serbian so you can understand this better.
PS, slomovi berza, nothing to do with government bonds. Only way for Triple A government bonds to lose value, if issuing government is no more. has been destroyed by a massive volcano or sunk like Atlantis.
https://www.youtube.com/watch?v=qJh6EQ5gv7g
Nagledao sam se ljudi koji su izgubili sve slusajuci ljude kao ti. Znaci nema toliko zivog novca za investicije 5 trilion. Ponavljam ti ne pricaj o tome koliko trziste vredi vec koliko ima zivog novca. To mozes da saznas ako pogledas ekonomske profile zemalja.
Ako su dali 162 u periodu 2014-2016, to mu izadje na ~8 evra po glavi stanovnika godisnje za te tri godine ili ~31 evra godisnje po zaposlenom.
You're talking about France and Germany here hose!
I am explaining you how their debt is defined and why there's little risk for government to default on borrowing, so far Germany and France manged to do quite well with their finances, even during the worst economic crisis for the € in 2012 and 2014/15.
Are people suffering as a result of economic slowdown, but Germany and France manged to stay afloat and are doing fine now.
Good luck neighbors and personally, I would hope for South Koreans! That would be so amazing, I think!!
Plus, imagine a Serbian plane landing at an airport called 'Adem Jashari.' So much for the Albanians wanting for the relations to be normalized.
In the end, it's still a shame Croatia didn't find someone better who isn't a politician like Belgrade, Ljubljana, Budapest, Warsaw, Munich... did.