Greece airports PPP signed

The Greek authorities have signed a 40-year concession with a private team to manage 14 regional airports.

Fraport AG Frankfurt Airport Services Worldwide and its Greek partner Copelouzos Group has signed contracts with the Hellenic Republic Asset Development Fund (HRADF) for the 40-year concessions to operate, manage, develop and maintain the facilities. 

Financial close on the deal is expected during the autumn of 2016, at which time full payment of the €1.234bn upfront concession fee will be made by Fraport. 

Along with the upfront concession payment, an annual fixed concession fee of initially €22.9m will also be paid. In addition, the consortium is required to invest a total of €330m in airport infrastructure until 2020, followed by maintenance and traffic-driven capacity investments during subsequent years of the project.

Fraport will have a clear majority share in the concession companies, while Copelouzos will hold the remaining stake. Ownership of the airports will be retained by the Greek government throughout the concession term. 

The mainland airports include Aktio (PVK), Kavala (KVA) and Thessaloniki (SKG). The other eleven airports are located on the Greek islands of Corfu/Kerkyra (CFU), Crete/Chania (CHQ), Kefalonia (EFL), Kos (KGS), Mitilini (MJT), Mykonos (JMK), Rhodes (RHO), Samos (KGS), Santorini (JTR), Skiathos (JSI) and Zakynthos (ZTH).

HRADF selected the Fraport consortium as preferred bidder in November 2014, over a Corporation America/METKA team and a Vinci Airports/Aktor Concessions team. In August 2015, the Greek government gave the final approval of the transaction.

Since 2012 Citigroup, Eurobank, Your Legal Partners, Drakopoulos & Vasalakis, Lufthansa Consulting, Doxiadis Associates and Alanna Consulting Group have been commissioned by the government to advise in developing PPP arrangements for 37 regional airports .

Copelouzos and Fraport are partners in the Northern Capital Gateway consortium that manages St. Petersburg’s Pulkovo Airport.