Zagreb Airport New Terminal Development PPP Project

Zagreb Airport - (airside, bridge, aircraft, large, Post image)

The Challenge

The Government of the Republic of Croatia decided to involve the private sector in the development of Zagreb International Airport and appointed, through the Ministry of Maritime Affairs, Transport and Infrastructure, InterVISTAS to provide Transaction Advisory Services.

Our Role

InterVISTAS served as advisor to the government on two Phases of the project. In Phase 1, the current state of the airport was reviewed and a traffic forecast was prepared, taking into account the current and future capacity of all facilities. A capital expenditure program was developed and deemed feasible. Finally, a DFBOT (Design-Finance-Build-Operate-Transfer) transaction was recommended and our legal expertise was used to review the draft concession documentation.

In Phase 2, the Ministry was supported during their negotiations with the preferred bidder and were advised on all issues raised by bidder and Grantor in the Transition period.

Results

A 30-years DFBOT agreement was awarded to MZLZ (Medunarodna Zracna Luka Zagreb), an Aéroports de Paris (ADP) led consortium in February 2012. An agreement was signed in December 2013. The consortium announced it will invest €331 million in a new terminal, €243 for the design and construction and €88 million for the maintenance over the entire concession period. The Croatian government secured long-term concession fees, while enjoying improved infrastructure for their capital city Zagreb. The future terminal will have an area of 65,000 m2, and will be capable of handling 5 million passengers annually, compared to the current saturated terminal capacity of 2 million passengers.