BRATISLAVA, February 22, (WEBNOVINY) — The Ministry of Transport has suggested a long-term lease of the Bratislava airport to a private investor in form of concession for 30 to 50 years. The ministry prolonged the originally proposed lease period of 20 to 30 years at the request of the Ministry of Finance presented during the interdepartmental review of a draft proposal for development of the Bratislava airport and small airports. Selection of a strategic partner for the airport in Slovakia’s capital should also be speed up by six months and be wound up by late June 2012.
Transport Minister Jan Figel (KDH) originally suggested to complete the process of selection of a suitable consultant and the international tender for a concessionaire of the airport by the end of 2012. The Ministry of Finance however had required to close the processes in March of next year at the latest but they eventually agreed on a compromise, setting the deadline for the summer of next year. This process should commence instantly after the Cabinet passes the proposal.
The Ministry of Finance demanded to extend the period of the lease because it believes that a shorter period would discourage investors from putting money in the airport’s development. “If the lease period exceeds 30 years, an amendment to the law on airlines and civil aviation will be required,” stated the Ministry of Transport in its proposal for development of the airport in Bratislava. Both substantial changes, i.e. suggested length of the airport’s lease and the date of selection of a concessionaire are also included in a draft Cabinet resolution prepared by the Transport Ministry, which should be on the Cabinet’s agenda shortly.
A minimum of EUR 350 million is required for development of the Bratislava airport in the next three decades, especially for a complex reconstruction and extension of main runways, completion and improving the quality of taxiways, construction of defrosting boxes for planes and increase in the number of parking lots for planes in front of a terminal.
The Ministry of Transport prefers airport’s leasing over its sale because the economic crisis and situation in the European Union and eurozone negatively affects the volume of one-off proceed from its sale. “We cannot expect equally advantageous terms as in intended privatization of the Bratislava airport in 2006. Some privatization processes in EU were even halted, for example privatization of the airport Prague – Ruzyne,“ said the ministry.
If the airport is rented, the government will retain a stronger influence and control over the facility. Moreover, the lease will ensure a regular income from the airport’s operation. After the concession expires, the state will be able to repeat the process under more favorable conditions or choose a different solution, reads the blueprint. The airport is able to cover operational costs and small-scale investments from its revenues, but its capacity is not fully used neither in passenger nor in cargo transportation. The Transport Ministry stated that potential investors outside Europe have shown interest in the partnership with the Bratislava Airport. The suggested form of cooperation is attractive for them, the department wrote. The final decision will thus influence the airport’s functioning for many years, concluded the ministry. However, the airport cannot passively wait until the concession is granted but must stabilize. Construction works on the new passenger terminal will go on and new lines will enrich the offer of flights. The state will continue to contribute to the security of the airport.
As for regional airports, the ministry suggests handing the airports Poprad – Tatry, Zilina and Sliac over to regional self-governments before 2016 at the latest. The state holds from nearly 98 to 100 percent of shares in these facilities via the Transport Ministry. Preparation works for the process are slated to start this year.
SITA