Greece launches €1bn Crete airport auction(3)

Private investors will be asked to bid on a 35-year concession to build and operate a new airport. The cost is estimated to be around €1bn and the Greek government has pledged to contribute €220m towards this.

The Greek government will invite bids for a private firm to build and operate a new international airport on the island of Crete. The cost of building the new airport is estimated to be around €1 billion, and the Greek government has pledged to contribute €220 million towards this cost.

To be located at Kastelli,  it will replace the existing airport serving the city of Heraklion and will be able to handle up to 10 million passengers each year, minister of environment George Souflias revealed at a press conference. 

Greece will put
€220m towards
the new airport

The government said in a statement it will take a 55 percent stake in the new airport’s operating company, with the winning bidder to take the remaining 45 percent stake. The new airport has been earmarked to begin operating in 2015, with the operator’s concession period to span 35 years.

Interested bidders have until February 2010 to submit proposals; the winning developer is scheduled to be selected during the first half of next year.

Road infrastructure to connect the proposed new airport with the surrounding region is also planned in parallel with the development of the airport.