Sofia Airport Concession Agreement

Some airport deals continue to be concluded, even if new ones are very thin on the ground. The signing of such a pioneering agreement is particularly important, as Bulgaria is considering its economic recovery from the coronavirus pandemic. The concessions and investments that will follow will give a new impetus to the country`s economy, which is trying to regain its economic base. Iskra: Actually, we did a lot of things. Among the main tasks we carried out were the overview and analysis of the relevant legal framework, the provision of the legal due diligence of Sofia Airport (with a focus on real estate, contractual and employment issues), advice and assistance in the development of the transaction structure, the revision of draft tender documents (including instructions to bidders and a draft concession contract) in order to ensure that anti-compliance with the right to obtain advice at intensive Q&A meetings, assistance in the opening and implementation of the concession procedure, post-award assistance, including advice on specific issues during the appeal procedure, and after confirmation of the arbitral award by the Tribunal assists in the commercial conclusion of the transaction (i.e. the signing of the concession contract). ”The concession procedure is the beginning, not the end of the long road ahead. We believe that with SOF Connect, Sofia Airport will really find the best to do right now. The skills of the leaders will convince Bulgarian society that public-private partnership is the right way to implement major infrastructure projects,” said Minister Jeliazkov. He expressed confidence that travelers and all those who use Sofia Airport services will notice the big difference and be satisfied with the challenges ahead. The signing comes a year after the Ministry of Transport chose the winner in its concession tender, delayed by challenges from other bidders to the Competition Protection Commission, which approved the ministry`s decision, and an appeal to the Supreme Administrative Court, which last month upheld the Competition Authority`s decision. EWCSL: What were the conditions for the award of the contract? What is the agreement for the future? The initial concession fee is BGN 550 million.

The concessionaire shall pay an annual concession fee equal to the greater of the two amounts: EUR 24,542,010.30 and the amount determined by applying 32% of the total amount of concession revenue for the year concerned. In accordance with the contract implementation programme, investments of at least €608 million will be made. In addition, as part of the 10th year after the start of the concession, a new Terminal 3 was built at Sofia Airport and the construction of a new cargo terminal is planned. Current plans include the renovation and upgrade of the site`s two terminals. Terminal 1 is completely renovated while Terminal 2 is modernized with the most modern technology….