IFC invests in Belgrade airport to boost development of Serbia’s infrastructure

IFC, a member of the World Bank Group, is providing a €182 million financing package to the new private concessionaire of Belgrade Airport Nikola Tesla, VINCI Airports Serbia, a subsidiary of VINCI Airports SAS. The concessionaire will develop and upgrade Belgrade’s Nikola Tesla Airport, to boost Serbia’s tourism and transport industry and encourage economic growth.

VINCI Airports SAS, one of the largest airport operators in the world and a member of France’s VINCI SA group, was awarded the concession to develop the airport in January, following a competitive public tender. The 25-year contract includes financing the airport’s upgrading, expansion, operation and maintenance and is expected to almost triple its passenger capacity by the end of the concession.

IFC’s financing package comprises a direct €72 million A loan and a €110 million B loan under IFC’s syndication umbrella.

“We are delighted to support the entry of a global leader in airport operation to Serbia, helping Nikola Tesla Airport reach its full potential for all stakeholders,” said Thomas Lubeck, IFC Regional Manager for Central and Southeast Europe. “This is the first airport concession in the country and we hope it will serve as a model for how the private sector can deliver efficient solutions in infrastructure in the region.”

Total costs for the Belgrade airport project are estimated at €982 million, including an upfront concession fee of €501 million payable to the government of Serbia, and approximately €380 million in capital expenditures and development costs. The upgrades are expected to increase the airport’s capacity to a service level of more than 14 million passengers annually by the end of the concession period in 2043, from 5.3 million in 2017.

Original source: IFC
Published on 21 December 2018