Contract for Kasteli International Airport in Crete receives “green light” from Brussels and heads for the Court of Auditors

An important step was taken regarding the tender for the concession project concerning the construction and operation of the New International Airport in Kasteli, Heraklion in Crete island. According to DG Comp, the project has been approved, allowing it to head for the Court of Auditors and consequently to the Greek Parliament for its final ratification.

The beginning of the concession period (Phase 1) will denote the construction of the Airport and all necessary infrastructure works such as the new motorway linking the future facilities with Crete’s Northern Motorway Axis (aka VOAK).

According to estimates Phase 1 is due to begin by the end of the year and last for 5 years. This will bring us to the end of 2023, when it is expected to be released to commercial operation.

The concessionaire is Ariadne Airport Group J/V (consisting of GEK TERNA and the Indian GMR Airports Limited) with a 54% stake and the Greek State with 46%. The concession company will be holding the management of the new Heraklion Airport that, until today, is still second in Greece, in terms of passenger traffic, second only to Athens International Airport, “El. Venizelos”.

The project’s financial data

– Construction offer: 480mln euros

– Participation of the Greek State: 45.9%

– Bond investment return: 13.95%

– Public contribution of 180mln euros (which limits the financial participation of the State by 40mln euros)

– “Spatosimo” percentage: 64.8%

– Amount of a binding investment (own funds): 158.4mln euros

– Zero lending to the concession company means that in addition to taxes it will get dividends from the first year of operation

– Subordinated debt (funds from other creditors, other than Banks): 36mln euros

 

Nikos Karagiannis-ypodomes.com

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