Tbilisi Airport

completed

_x000C_TAV Georgia holds a 11.5-year concession (from January 2006) from the Tbilisi International Airport Joint Stock Company to design, finance, construct, maintain, and operate the Tbilisi International Airport (“TIA”). TAV Georgia has the option to extent the concession period by an additional five years by designing, constructing and financing but not operating the upgrade of the Batumi International Airport for approximately USD15 million. TIA is located 20 km from the capital city of Tbilisi and serves as the main gateway to Georgia. In 2005, TIA handled approximately 535,000 passengers. Anticipated continued growth in traffic at TIA has created the need for substantial upgrade and expansion of the airport facilities to allow the airports to operate at international standards of safety and efficiency and support Georgia’s continued economic progress. The proposed project (the “Project”), expected to cost USD76.5 million, includes: (i) USD51.5 million for the construction of a new international terminal and car park, widening of the runway, extension of the apron and taxiways, and upgrade of emergency response services at TIA; (ii) USD4 million for acquisition of ground handling equipment at Tbilisi Airport; (iii) USD15 million for the construction works and modernization of equipment and systems at Batumi International Airport; and (iv) working capital, insurance and financing costs.