Tirana International Airport concession

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In April 2005, the government of Albania awarded a 20 year concession contract to Tirana Airport Partners Sh.p.k. (TAP) for operating and managing Nene Tereza International Airport in Tirana. The contract also included the upgrading of the airport facilities to handle 1 million passengers per year and building a new passenger terminal. Nene Tereza International Airport was the most important hub of transportation in Albania and the country’s only international airport. In 2005, it was used by close on 785,000 passengers. The project was awarded through a competitive negotiation. In April 2004, TAP consortium was selected as the preferred bidder. The Tirana Airport Parners Sh.p.k. (TAP) consortium was led by Hochtief Airport (47%), an airport investor and manager. This TAP consortium was comprised of DEG Deutsche Investitions-und Entwicklungsgesellschaft (31.7%) and the Albanian-American Enterprise Fund (21.3%). Under the concession contract, the TAP consortium had to accomplish two goals: optimizing the operation of the new airport and converting it into one of most modern infrastructure facilities in Albania. The total cost of the project was estimated at US $308 million. The project reached financial closure in April 2005. The entire debt facility for this project comprised of a syndicated loan in the amount of US$ 64.1million and guarantee facility in the amount of US$ 11.6million. The lenders were EBRD, DEG of Germany, the American Bank of Albania and Alpha Bank. Construction work of a new passenger terminal began in April 2005 and was expected to be completed in fall 2006 and be fully operational by spring 2007. In 2008, Tirana International Airport initiated Phase B. The project comprised (i) extension of the passenger terminal to a capacity of 1.5 million PAX; (ii) supply of additional equipment and systems; (iii) investment into airfield; (iv) construction of airside equipment building; (v) procurement of ground handling equipment and also includes the refurbishment of the old terminal. Phase B was completed in September 2009. The financing of Phase B included EUR22 million in debt. EUR 10.6 million (US$15.5 million) in loans came from EBRD while EUR 11.4 million (US$16.7 million) in loans was provided by DEG, Alpha Bank and the American Bank of Albania.