BULGARIA’S CARETAKER TRANSPORT MINISTER PROPOSES CANCELLING THE CONCESSION FOR SOFIA AIRPORT

Bulgaria’s caretaker Transport Minister Hristo Alexiev said on 21st of March that he would make a proposal for cancelling the ongoing concession tender for Sofia Airport. As a reason for the proposed cancelling he pointed out that the concession did not fully protect the public interest.

In his words, the fee of 550 mln. BGN, which the future concessionaire has to pay, will ultimately be calculated in the size of airport fees and hence airlines will raise ticket prices.

The concession of Sofia airport does not protect the state’s interest, Hristo Alexiev said. He will propose to the Council of Ministers to cancel it. In the concession it is stipulated that the new operator will have to pay an upfront fee of 550 million BGN, which, however, would lead to increase in the airport charges. This would result in reduced traffic at Sofia airport, Alexiev added. “The regular airlines will continue operating but others, for which this is not profitable, will likely withdraw,” he said.

The money raised through the concession were intended to be used to cover the debts of the Bulgarian State Railways, BDZ, but minister Alexiev said he opposed this idea because the airport concession would subsidise railway transport.

In the terms of the concession, the requirements for investment in the airport were seriously neglected, according to Alexiev.

Through this concession, the state apparently wants to get some "short money" that will go somewhere and is not interested in the development of the airport, although the concession is for 35 years.

The proposal for cancelling the concession will be submitted to the Council of Ministers no earlier than 5th of April.