UPDATED VINCI signs Belgrade Airport concession

France's VINCI Airports has today signed a 25-year concession agreement for the financing, development through construction and reconstruction, maintenance and management of infrastructure of Belgrade Nikola Tesla Airport. The deal, worth over 1.5 billion euros, was sealed by the Serbian Prime Minister, Ana Brnabić, and VINCI Airports Chairman, Nicolas Notebaert. This was followed an hour later by a tour of the airport, which was attended by VINCI's management, the Serbian Deputy Prime Minister and Minister for Construction, Transport and Infrastructure, Zorana Mihajlović, the French Ambassador to Serbia, Frederic Mondoloni, the Mayor of Belgrade, Siniša Mali, as well as the General Manager of Nikola Tesla Airport, Saša Vlaisavljević.

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Speaking at the signing ceremony, VINCI Airports Chairman, Nicolas Notebaert, said, "I would like to thank the Serbian government for this transparent concession process, which was apparent throughout all of its stages. We would also like to thank for the confidence that has been entrusted in us. We will prove that this was the right choice. We have come here as long-term partners. We will give our utmost to develop this airport, which is in the interest of all parties involved. Of course, we would not be here today if we did not believe in the major potential this airport holds. Moreover, we believe in the high potential of Belgrade as a leisure and business destination and we want to help the airport realise this potential. We also want to link Belgrade with cities and countries such as Lisbon, Santo Domingo and Chile so it becomes a leading regional airport in this part of the world. Since we do not operate here, it will become our flagship airport. As a concessionaire, we try to improve the team leading the airport. We will work to help Air Serbia introduce new long haul routes and also assist other airlines in order to attract many passengers to visit this beautiful country”. He added, “We have an energetic investment plan. First and foremost, our aim is to make every visitor remember Serbia in the best possible way, since the airport is the first and last place they will see in a country. We are excited that Belgrade Nikola Tesla Airport will become a true hub in this part of Europe”.

The Chairman continued, “Our bid was competitive both in financials but also in the intent, because, firstly, we believe in this project. Our team studied the capacity, the potential to create growth because the main driver of the concession is the traffic, the number of people in and out of Serbia. We strongly believe in Serbia. The number of visitors that will arrive in the coming 25 years, the government policies, as well as the good mix of business, tourism and investment will create traffic. It is a win-win situation where the more routes we open, the more people it brings and the more activity is generated. We have the belief that with our expertise and our network, we can offer a good mix between the initial physical investment, which is required by the concession and we think is necessary, but also the quality of service which we will start work on straight away”.

The French Ambassador to Serbia, Frederic Mondoloni, said, “Today is a real special day for France and Serbia. It is a real pleasure and honour for me to take part in the signing ceremony of the agreement between the Serbian government, Nikola Tesla Airport and the French company VINCI. This year started in the best way for France and Serbia. In January we were delighted to hear that the Serbian government decided to award the Belgrade Airport concession to VINCI. This contract is indeed a major step for France and Serbia. I wanted to thank all the Serbian authorities in the name of the French government and the French President of the Republic. The tender procedure went through a long and precise examination of all bidders’ offers. VINCI Airports was finally selected after the process. This decision to choose a large French company, which is one of the biggest airport operators in the world, will allow for the continued improvement and development of Belgrade Airport. This is a good choice for France and VINCI, but I am deeply convinced this is a very good choice for Serbia too. I want this to be a win-win partnership based on our long-lasting friendship. I believe this investment by a major French company will attract many other French investors to Serbia”.

The Serbian Deputy Prime Minister and Minister for Construction, Transport and Infrastructure, Zorana Mihajlović, noted, “Today is a big day for Serbia, Belgrade and Nikola Tesla Airport. Today we signed the concession on which we have been working on for several years. The terms of the agreement are more or less known. They include an upfront payment, further airport investment, as well as an annual fee. Our vision is for Serbia to be a transport hub and an unavoidable country not just in Southeast Europe but also in Europe”.

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Commenting on the takeover this morning, Belgrade Airport General Manager noted this morning, "This year, from the thirty or so airlines operating to Belgrade, but especially from Air Serbia, we anticipate many nice surprises. In honour of VINCI and France, a classical music concert will be held at the airport this afternoon. Representatives from the French company will tour the airport twice today. It will be a long day for all of us. In the future, you can expect only positive news from the airport". Mr Vlaisavljević added, "We are handing over the airport to our partner VINCI in an excellent state".

VINCI will provide an up-front payment of 501 million euros, a further annual tax payment of between five and sixteen million euros and has obligated itself to invest 732 million euros into the airport. It will have a controlling stake of 83%, while the remainder will continue to be owned by minority shareholders and several banks. "As concessionaire, VINCI Airports will aim at improving airport operating conditions to enable Air Serbia to offer new long haul routes as part of its hub strategy. Furthermore, VINCI will build on its partnerships with over 200 airlines to increase the airport’s traffic and connectivity, in line with Serbia’s strong economic growth potential", the French company said earlier. It also noted that it would capitalise on the substantial airport management and development expertise it has acquired in France, Portugal, Japan and other countries to improve Belgrade's overall airport customer experience, notably by reorganising and optimising passenger flows and expanding retail areas. Mr Notebaert, said previously, “This success marks a new stage in VINCI Airports’ expansion outside France. Belgrade Nikola Tesla Airport will serve as the company's “hub” in Southeast Europe, a geographical area in which VINCI Airports has not operated until now”.

The French company has said it plans to take control of the airport by September 2018, following the financial close of the concession deal. The Serbian government has noted that VINCI has been obligated to keep fees and charges for airlines unchanged during the first three years of its 25-year concession, keep the existing workforce, overhaul the airport's runway and terminal buildings, build a new passenger terminal, as well as a new runway. VINCI has set a target for Belgrade to handle at least seven million passengers per year by 2024 and ten million by 2030.