Republic of Kosova

Presentation By:

Donat Alaj

Partnerships Kosovo

CAPACITY BUILDING CONFERENCE ON

PUBLIC PRIVATE PARTNERSHIP (PPPs)

Zagreb, Croatia

February, 2011

Republic of KosovaMinistry of Economy and Finance

PRISHTINA INTERNATIONAL AIRPORT (PIA) BACKGROUND

• Prishtina International Airport is the only commercial Airport in the Republic of Kosovo.

• It began functioning in 1965 and was originally designed to be used mainly as

military airport

• From 2000 to 2008 PIA was operated under the supervision of Iceland Civil Aviation

authorities, since 2009 the Airport has been operated by PIA JSC, a company wholly

owned by the Government of Kosovo.

• Over the past 10 years, PIA JSC has invested over €50 million to rehabilitate and

modernize the Airport’s infrastructure however its infrastructure remains in dire need of

significant capital investments

• PIA has more then 1.3 M passengers yearly; with over 35 aviation companies, serving

over 21 destinations and providing direct flights to many of Europe’s largest cities.

PRISHTINA INTERNATIONAL AIRPORT (PIA) BACKGROUND

GOVERNMENT’S PROJECT IMPLEMENTATION TEAM

TRANSACTION STRUCTURE

• 20 Year Concession

• PPP/DBFOT Transaction Structure

• New Landmark Terminal Capacity: 25.000 M2

• Predefined Performance and Quality Level (IATA C)

• Scope of Services : all PIA JSC functions except ANSP

• Employee Treatment – full time employees guaranteed 3Y employment

• Annual Payments to Government

•Concession Fee (% of Gross Revenues)

•Taxes

•Asset ownership remains with the Public Sector

MINIMUM REQUIRED INVESTMENTS IN PIA

• New Terminal (25.000 m2)

• New Control Tower and Related Facilities

• Relocation of Radar and Navaids equipment

• New apron: 7 Code C (B 737) aircraft parking positions

• New pick-up & drop-off curb (214 m)

• New parking (1,750 new bays/ 56,000 m2)

• New taxi and bus staging areas (4,130 m2)

• New airport access lane

• New water treatment plant

QUALIFICATION REQUIREMENT

LEGAL INDEPENDENCE TECHNICAL FINANCIAL

At set forth in PPP and Public Procurement Law



No airline ownership or Control

Not an entity dependent on Government Budget

No competing airports in 200km radius



as Airport Operator (3 years)

in Airport O&M (2 int Airport, 2M pass. in 2 different contr.)

In Airport DBF contracts (1 air. In last 7 years, with con. value

€100M)

Client satisfaction



Adequacy of equity

Average of € 150 M each of last 3 years

Profitability and free cash flow (€ 50 M equival. during each

of the last 3Y)

Ability to raise financing

QUALIFIED CONSORTIUMS

Limak- Aeroport de Lyon

Consortium

Fraport IC ICTAS

Havalimani Islemetme

A.S

Bouyges Batiment Int’I

EGIS Segap/Eurokoha

(PAIC) Consortium


LEGAL TECHNICAL PRICE PROPOSAL

Confirm requirements

Evaluation on pass/fail basis


Substantive reviewof business plan

Evaluation on pass/fail basis



Award to Bidder offering highest % of revenues to GoK


Limak- Aeroport de Lyon

Consortium

Fraport IC ICTAS Havalimani

Islemetme A.S

Bouyges BatimentInt’I EGIS

Segap/Eurokoha

(PAIC) Consortium


CONTRACT AWARD

Limak- Aeroport de Lyon Consortium

avg 39.42% of Gross Revenues for 20 years

PPP Agreement between GoK and

Limak- Aeroport de Lyon Consortium

has been signed in August 12, 2010

PPP Agreement to become effective in February 2010

PARTIES TO THIS AGREEMENT

AGREEMENT GUARANTEE STRUCTURE

•Tender Security: €850,000

•Performance Security:

Construction Works: €20 million

Operations & Maintenance: €250,000

Draw downs must be replenished

CONCESSION FEE STRUCTURE

Fixed Concession Fee

Year 0: € 2 million (paid on Effective Date)

Year 1: € 2 million (paid in quarterly installments)

Floating Concession Fee

Yrs 2 – 20: Percentage of Gross Revenues (paid quarterly)

Year 20 payment is pro-rated

RISK ALLOCATION

Risks Grantor Private Partner

Construction

Demand

Financial

O&M

Commercial

Regulatory

Force Majeure

Political

Expropriation

CONDITIONS PRECEDENT

• Financing Plan

• Financing Agreements

• O&M, Construction Contracts

• Environmental Baseline Report

• Technical Plans and Designs

• O&M and Constructions Guaranties

• Evidence of Account & Reserves

• Evidence of Paid-in Capital

• Draft Transition Plan

• Operating Budget

• Employee Contracts

• Acceptance of PIA Contracts

• Organizational Chart of Senior

Mgmt. Staff

Grantor CP’s Private Partner CP’s

Mutual CP’s

• Independent Engineer

• Legal Claims

• Vacant Enjoyment

• Relevant Consents

• Project Monitoring Unit

• Registration of the Agreement

in National PPP registry

SELECTION OF DESIGN

Selection of the winning design concept

Preferred bidder selected three different architectural firms

Submittal of three design concepts

• Architectural firms with experience in comparable airport designs

• Landmark design

• Evaluation by GoK of three different concept designs

• Recommendations on revisions for the designs

THE EXISTING TERMINAL

NEW TERMINAL DESIGN

NEW TERMINAL DESIGN

NEW TERMINAL DESIGN

NEW TERMINAL DESIGN

PPP PROJECT PIPELINE – CENTRAL GOV’T

NAME OF PROJECT CONTRACTING AUTHORITY SECTOR PPP TYPE (Preliminary)

ROUTE 6 Ministry of Transport and

Telecommunication

Transport BOT (Subzidise), PFI

TAK & CUSTOMS Building Ministryof Public

Administration

Government and Public

Buildings

PFI

ROUTE 7 Ministry of Transport Transport Service, Management,

Lease

SOLID WASTE LANDFILL

MANAGEMENT

Ministry Of Economy And

Finance

Waste Mgmt

PPP & PRIVATIZATION PROJECT PIPELINE - MUNICIPALITY

NAME OF PROJECT CONTRACTING AUTHORITY SECTOR PPP TYPE (Preliminary)

SOLID WASTE

COLLECTION AND

SORTING

Municipality of FUSHE

KOSOVA

Dept of Public Services

Waste Mgmt BOT/Consession,

Management, Lease

URBAN TRANSPORT Municipality of PEJA

Dept. of Public Services

Transport BOT/Concession

BRECREATIONAL CENTER

(incl. Botanical Garden)

Municipality of MITROVICA

Dept. of Urbanism

Sport and Recreation BOT

Recreational Center

DARDANIA

Municipality of GJILAN Sport and Recreation BOT

Prishtina Undeground

Parking 1

Municipality of PRISHTINA Transport BOT


Parking 2



Parking 3


Republic of Kosova

Ministry of Economy and Finance

[email protected]

www.pppkosova.org & www.mef-rks.org

Republic of KosovaMinistry of Economy and Finance

mailto:[email protected]

http://www.pppkosova.org/

http://www.mef-rks.org/



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Republic of Kosova