Belgrade Airport

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 IFC is considering an EUR 100 million senior loan for its own account and mobilizing additional senior debt to support the privatization and further development of Airport Nikola Tesla (ANT or the “airport”) in Belgrade, Republic of Serbia, through implementation of construction and rehabilitation works, maintenance, management and operation of the airport, under a 25-year concession (the “Project”). Other international financial institutions are also considering financing the project. The project was awarded in a two-stage tender process launched by the Government of Serbia (“GoS”) in February 2017. The preferred bidder (VINCI Airports SAS or the “Sponsor”) and the Concessionaire, VINCI Airports Serbia (“VAS”, the “Company” or the “Concessionaire”), signed the Concession Agreement (“CA”) on March 22nd, 2018.  Airport Nikola Tesla is the largest and busiest airport in Serbia serving 5.3 million passengers.  The airport recorded 58 859 aircraft movements in 2017. The airport is situated in the western part of Belgrade, 12 km from the city center. The site was developed on a greenfield in 1962. The concession will require an expansion of the existing ANT footprint over approximately 32 ha. The airport is mainly surrounded by agricultural fields, undeveloped land plots and a relevant number of residential houses mostly located in the proximity of the airport fence line or approximately 400 m to the south of the airport runway and taxiway. These are recently constructed houses that are unplanned and have gradually encroached in the airport protection zone towards the limit of the airport, outside of the concession area. Beyond the unplanned settlement, the nearest residential houses are located at approximately 400 m to the south from the south-eastern point of the taxiway and at approximately 500 m to the north from the northwest section of the runway. No industrial premises are located in the airport vicinity.  The total project costs are estimated at EUR 1.2 billion and include capital investments in excess of EUR 700 million that the Concessionaire is undertaking throughout the concession lifetime. The works program include: (i) rehabilitation  of the existing runway; (ii) construction of a 3,500-meter temporary runway; (iii) rehabilitation of the existing taxiways and construction of new taxiways; (iv) construction of a new apron stand; (v) new facilities and system enhancements such as a new administrative building, integrated command and control center, new engineering and maintenance campus, combined gas-fired cooling, heat and power (or trigeneration) plant, enhancement of airport rescue and firefighting facilities; (vi) terminal building reconfiguration; (vii) utilities upgrade such as water supply, distribution and storage, wastewater sewage system rehabilitation, upgrade of power supply and distribution; and (viii) environmental enhancement works such as construction of new facility for waste sorting, new hazardous waste storage facility, construction of wastewater treatment plant, installation of oil/water separators in airport storm water collection system, upgrade of airport fuel farm, and implementation of energy efficiency measures.  Construction works is expected to commence in 2020 and be completed in 2025. The Concessionaire is considering signing the Engineering, Procurement and Construction (“EPC”) agreement with a joint venture of VINCI Construction Grands Projets and Terna S.A (the “EPC Contractor”). VINCI Construction Grands Projets is part of VINCI Group and Terna S.A. is the construction company of Gek Terna Group.