Russia is gearing up to launch more public-private partnerships (PPPs) to modernise its ageing airports, Prime Minister Vladimir Putin announced yesterday.
Putin: wants to involve
“We need to make aviation infrastructure a promising and attractive investment and establish clear-cut and comprehensible regulations in this sphere,” Putin said, adding that Russia “clearly needs a law on airports and the airport business.”
While Putin did not specify which airport PPPs might be next he did hint that 14 regional airports – including Nizhny Novgorod, Samara, Ekaterinburg Koltsovo and Novosibirsk Tolmachevo – could be next. The ownership of those 14 airports was transferred to the Russian regions under a 2007 law.
“Ownership of 14 airports has been transferred to Russia’s regions so far. However, a regional government that assumes control of an airport is obligated to renovate it – which is the real purpose of the ownership transfer – and to do so with the funds of their regional budgets or contributions from investors. We will closely monitor the execution of these obligations,” he warned.
St. Petersburg’s $1.1 billion Pulkovo Airport became Russia’s first PPP to reach financial close in late April without any form of government support. The project was awarded to a consortium led by Russian bank VTB, Frankfurt Airport operator Fraport and Horizon Air Investments. A club of multilaterals and international banks lent $715 million to the project with the remaining coming from the consortium in equity.