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Schiphol Airport lands €350m EIB financing

Europe’s third-busiest airport is planning to build a new pier and terminal which would allow the hub to welcome up to 15m more passengers.

The European Investment Bank has agreed to partially fund an expansion of Amsterdam’s Schiphol Airport with a €350 million financing package.

The EIB’s support for the Schiphol Group will arrive in the form of two €175 million tranches, the second of which will be released at a later date yet to be agreed upon by the two parties, according to an EIB spokesman.

The agreement will facilitate the building of a new pier at the airport, scheduled to be built by the end of 2019, and the construction of a second terminal set to open in 2023.
While Schiphol declined to disclose the total cost of the project, a spokesman for the airport told Infrastructure Investor it plans to invest €600 million per annum over the next several years to boost quality, capacity and accessibility. He added that the remainder of the project will be financed through issuing bonds and from its own operational cash flow.

Schiphol Group is owned by the Netherlands’ government (70 percent), the Municipality of Amsterdam (20 percent), Aéroports de Paris (eight per cent) and the Municipality of Rotterdam (two percent). The group has an A1 debt rating assigned by Moody’s.

The expansion is expected to provide an increase of up to 15 million extra passengers per year. Schiphol recorded a 9.1 percent traffic uplift in 2016 as its 63.6 million passengers saw it move above Germany’s Frankfurt Airport and Turkey’s Istanbul Airport to Europe’s third-busiest. The increase also placed the site as the fastest growing of Europe’s top five airports.

Describing Schiphol as a “showpiece for the Netherlands”, EIB vice-president Pim van Ballekom said further development of the airport was essential. The bank’s support is a continuation of its previous work with Schiphol Group, to whom it provided €150 million for a new runway in 2002 and a further €200 million in 2013 for enhanced terminal security infrastructure.