TALLINN AIRPORT PASSENGER TERMINAL RECONSTRUCTION

complete

The project consists of the rehabilitation and improvement of the passenger terminal at Tallinn Airport and provision of additional space for commercial activities. The main objectives are to provide the Airport with international safety and security standards, increase its capacity to 1.4 million passengers per year, improve passenger comfort levels and expand the terminal space allocated to non-aviation commercial activities. Loan proceeds will be used to finance the related investments under a fixed price turnkey contract. As Tallinn Airport is already an important international gateway, the project will contribute tangibly to Estonia's transition process. It is also expected to ensure implementation of market-oriented management and operational practices at the Airport while enhancing competition with sea transport in the Gulf of Finland. Given the involvement of the EBRD in the earlier rehabilitation of the airside infrastructure at Tallinn Airport, the project will demonstrate the importance of phasing investments to match the limited availability of capital resources. The borrower will be Tallinn Airport Limited, a wholly state-owned enterprise operating Tallinn Airport. A 15-year sovereign guaranteed loan of DM 14.81 million (ECU 7.6 million). The European Investment Bank (EIB) is to co-finance the project with a similar loan. Tallinn Airport is expected to finance DM 4.4 million from its own internal cash flows. DM 34.0 million excluding taxes (ECU 17.5 million). The project was screened B/0, requiring an Environmental Analysis of the main impact associated with the rehabilitation. The Analysis was based on an on-site survey review of the project master plan and design documentation. The environmental impact of the project is limited and will be mitigated through specific measures included in an Environmental Action Plan. These include waste management, de-icing strategy, use of hazardous chemicals, noise abatement and environmental monitoring. The reconstructed terminal building will be extremely energy efficient, which will be of benefit to the environment. The Airport will develop an environmental management system in line with international standards, such as ISO 14000, which will further improve its environmental, health and safety performance. Separate grants of ECU 580,000 and ECU 370,000 have been provided for consultancy assistance.