Government of Kosovo approves PPP for Pristina International Airport

The Project Steering Committee created by the Government to analyze investment and operating options for Pristina International Airport has recommended that the Government of Kosovo undertake a Public-Private-Partnership for the operation and expansion of the country’s primary airport.

The recommendation was justified on the basis of an investment-grade feasibility study which was performed by international experts from a consortium of US and Dutch companies.

The report was based on future traffic forecasts for the Airport.  The study likewise analyzed infrastructure requirements needed to meet expected future demand at acceptable levels.  The recommendation aims to move Pristina International from an airport qualified as “inadequate” by international standards to a world-class airport by 2012.

The required investment project includes a new terminal building which will be more than triple the size of existing installations. The new terminal will allow the people of Kosovo to take pride in their nation and shall serve as a landmark to Kosovo’s future.

Other required infrastructure include a new air traffic control tower (and related facilities), a new apron providing 9 additional aircraft parking positions, a new water treatment facility, etc.     

In order to finance this very significant investment program, the study recommends using a private sector investment in the form of a concession. 

Although the assets will remain property of the people of Kosovo, private investment will allow the government and people of Kosovo to benefit from the investments, without taking funds from the Kosovo Budget away from other priority projects.  Likewise, the study demonstrates that by using private financing and management, the people of Kosovo will be receive up to twice as much money from an airport operated by qualified experts. 

The use of private investment and management to deliver public sector infrastructure and services would be a first in Kosovo’s history.  Other airports in the region already are using private operators, so for Kosovo to compete, it must also look to specialized companies.

With this decision, the Government must now work with its transaction advisor and international experts to develop the tender documents for a competitive public tender.  The Project Steering Committee is fully committed to undertaking this very important project with absolute transparency and in accordance with international best practices.

 

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