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€1.403bn paid for 20-year extension of Athens Airport concession

Athens International Airport (AIA) SA paid the full amount agreed for the extension of the Athens “Eleftherios Venizelos” airport concession by 20 years. The payment of €1.403 billion, including VAT, concludes the process for extending the concession contract.

According to estimates, the total amount that the Greek state stands to gain by extending the contract could exceed 6.0 billion euros.

The net revenues for the privatisation programme comes to 1.132 billion euros, which is made up of the agreed sum of 1.115 billion euros, an additional sum of 16.676 million euros that corresponds to a 10.3 pct  annual percentage adjustment calculated proportionately on a daily basis from January 1, 2019 as set out in the extension agreement between the Greek state, the Hellenic Republic Asset Development Fund (HRADF) and AIA, state news agency amna reports on Friday..

In addition to the above sums, however, the state is also expected to benefit from the annual concession rights fee that amounts to 15 pct of AIA’s pre-tax profits (estimated at 1.1 billion euros in total), revenue from income tax in the same period amounting to 1.7 billion euros and dividend payments that could amount to an estimated 2.2 billion euros.

According to HRADF, as a result of forecast increases in passenger traffic and tourism, AIA will be called upon to carry out additional investments of about 2.9 billion euros during that time, in order to gradually expand the airport’s capacity from 26 million passengers per year at present to 50 million passengers a year before the concession expires.

Such investments will include extensions of the passenger terminals, new aircraft parking slots, extension of the road network and others. The further development of the airport and its activities, combined with an increase in tourism, are expected to lead to the creation of 180,000 new jobs throughout the country.

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