Zagreb Airport

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The Project is to construct a new terminal and other support facilities and, as per the Concessionaire’s intent, to refurbish the existing terminal at Zagreb Airport (“ZAG”), the largest airport in Croatia, to accommodate existing and future air traffic. The existing terminal has an estimated capacity of approximately 2mn passengers. IFC will provide long-term equity capital in amount of max €19 m (out of total project cost of approx €365 m, a combination of senior debt, equity and cash from operation) for the implementation of this PPP project in Croatia. Construction is expected to commence April 2013 and be completed in 2016.Zagreb Airport is approximately 10km south of the center of Zagreb situated in the territory of the City of Velika Gorica and Zagreb County in the cadastre municipalities of Pleso, Micevec and Kosnica. In existence since 1962, the airport is surrounded with a mix of commercial and residential areas; residential areas located to the south-east are most affected by the current activities and planned development. The Airport represents a rare example in Europe in which the capital city airport is also an air force base and one runway is used both for civil and military purposes. According to the Concession Agreement the military will continue to use the runway based on the agreement between the Concessionaire and the Ministry of Defense. Existing clients of IFC, the Project sponsors ADPM and BBI participated in the Government of Croatia’s (“GoC”) tender for this airport concession via a newly established company, Zagreb Airport International Company (“ZAIC”), and were awarded the Concession in February 2012. As per the Concession Agreement signed in April 2012 between the Republic of Croatia (represented by the Ministry of Maritime Affairs, Transport and Infrastructure) and ZAIC, a Croatian company named Medunarodna zracna luka Zagreb d.d. (MZLZ) has been established by ZAIC and the Concession Agreement has been novated in October 2012 to MZLZ, and therefore MZLZ is the Concessionaire. The Concessionaire obligation is to build, operate and maintain a new passenger terminal and related infrastructure at Zagreb Airport on a 30-year concession basis. Also as part of the Project, a new 1,8 km long access road will be built to connect the new terminal with the existing road network of Zagreb city. The existing terminal will be converted to space rental for airport users, i.e. ground handlers, airlines and any other stakeholder. BBI will be responsible for the design and construction matters related to the Project while ADPM will manage the airport operation matters.