TAV beats GMR and Fraport to Izmir contract

The Turkish airports operator has won the tender for operating rights to Turkey’s Izmir Adnan Menderes Airport, which it constructed. TAV came through 11 bidding rounds, paying €610m for the contract which runs until 2032.

TAV Airports (TAV), the Turkish airports operator, has won the operating rights to Izmir Adnan Menderes Airport’s international and domestic terminals until the end of 2032. The tender was granted by Turkey’s General Directorate of State Airports Authority (DHMI).

The firm is already very familiar with the airport, having constructed it under a build-operate-transfer model eight months ahead of schedule. The airport commenced service in September 2006.

TAV has paid €610 million for the contract, while also pledging to invest €250 million on the construction of a new domestic terminal. The firm also aims to connect the domestic and international terminals by a bridge system.   

TAV had placed bids in 11 rounds of bidding, which lasted for nine-and-a-half hours. During this process, it beat off consortia including Turkish construction firm IC Ictas and Frankfurt airport manager Fraport; and Turkish construction firm Limak and Indian infrastructure firm GMR Group, which won the bid to develop Istanbul Sabiha Gokcen International Airport in 2009.

According to DHMI data, Izmir Adnan Menderes Airport provided services to more than 7.3 million passengers in the first 10 months of 2011, a 15 percent increase over the same period of 2010.

Among TAV’s Turkish airports portfolio are Istanbul Ataturk Airport, Ankara Esenboga Airport and Antalya Gazipasa Airport. It also operates two airports in Georgia, two in Tunisia, and another two in Macedonia.

In late September, TAV's two main shareholders – local firms Akfen and Tepe Insaat Sanayi Anonim Sirketi, which own over 52 percent of the firm – mandated Credit Suisse to look at a potential sale of TAV Airports. Indicative bids are expected by the end of this month.