Fraport Greece has announced to Public Financial Services and General Commercial Registry of Ministry of Economy a share capital increase of 620 mil. euros.
After this increase, the company’s total share capital amounts at 650 mil. euros. All relevant taxes have already been paid.
At the same time, Fraport Greece has submitted to HRADF the financing contracts, in order to be examined and approved by the Greek State, as provided by the concession contract.
The upfront concession payment (1.234 bn. euros) – to be made at the time when Fraport Greece takes over the airport’s management – and the financing of the investments that Fraport Greece will implement by 2020 for the development of the airports’ infrastructure (more than 330 mil. euros), are fully ensured by the equity and debt financing.
In view of taking over the 14 airports’ management, Fraport Greece has implemented all required procedures, provided by the concession contract, for the smooth and safe operation of the airports.
The company has, also, proceeded with the necessary recruitments and training of the employees that will staff the airports, but also to the installation of new IT & T infrastructure for the upgrade of the airports operations. The tenders for the security and facility management and cleaning services of the airports have been completed, while the majority of commercial concessions and leases have been agreed and signed. The contract for fire security services by the Hellenic Fire Service has been recently signed with the Greek State. Respective contracts have been signed with the Hellenic Coast Guard and the General Secretariat of Civil Protection.
The Greek Regional Airports Project
A Win-Win Project for Greece:
- The 14 Greek Regional Airports Project is a major private investment. It is considered to be one of the largest concession projects in Greece and presents significant potential benefits to the tourism sector, Greece’s economy as a whole, the people of the regions served by the regional airports, as well as to millions of international tourists visiting beautiful Greece every year.
- In the highly competitive international tourism industry, the 14 regional airports serve as vital gateways for one of the country’s most important sectors. The Greek Regional Airports include 3 mainland gateways (Thessaloniki, Aktion and Kavala) and 11 airports on Greek islands (Chania on Crete, Kerkyra on Corfu, as well as Kefalonia, Kos, Mykonos, Mytilene, Rhodes, Samos, Santorini, Skiathos and Zakynthos). Together, these airports received more than 23 million passengers in 2015 (up 6 percent year-on-year). Around 73 percent of these passengers are international travelers.
- In early 2013, Greece’s state-owned Hellenic Republic Asset Development Fund (HRADF) initiated a transparent, international bidding process for two 40-year concessions to operate, maintain and upgrade seven regional airports under each concession (Cluster A & luster B). The Fraport-Copelouzos consortium participated in this tender process which attracted leading international bidders.
- HRADF selected the Fraport-Copelouzos consortium as preferred bidder in November 2014 for the 40-year operating concessions for both Clusters A and B, based on the highest bid of 1.234 billion euros for both clusters.
- Fraport and Copelouzos Group established their joint company Fraport Greece in 2015 to act as the concessionaire for the two concessions.
- On December 14, 2015, Fraport Greece signed contracts with the HRADF and the Greek state for the 40-year concessions for the two clusters. The contracts are based exactly on the same bid submitted by Fraport-Copelouzos and selected by HRADF in November 2014.
- At the time of the project closing full payment of the €1.234 billion euros upfront concession fee will be made by Fraport Greece in tandem with the takeover of operations at the airports. Along with the upfront concession payment, an annual fixed concession fee of 22.9 million euros, plus an annual variable concession fee will be paid.
- The Greek Regional Airports are not being sold. Ownership is retained by the Greek State.
- During the 40-year concession period, Fraport Greece will be responsible for the operation, maintenance and upgrading of the 14 Greek Regional Airports. Under the contract, around 330 million euros will be invested by Fraport Greece in improving the airports during the first years up to 2020. In subsequent years, further investments can be made for maintenance and possible capacity expansions, depending on traffic volumes – totaling more than 1 billion euros in investments (including the 330 million infrastructure investment in the initial phase).
