Tirana Airport Privatisation Project



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

03 Mar 2005



PSD disclosed:

31 Jan 2005

Project Description

The facility is intended to provide long term financing for the development of Phase B of Tirana International Airport (TIA) as well as refinance part of existing Phase A financing. Phase B development consists of the following:

i) extension of the passenger terminal to a capacity of 1.5 million PAX;

ii) supply of additional equipment and systems;

iii) investment into airfield;

iv) construction of airside equipment building;

v) procurement of ground handling equipment and also includes the refurbishment of the old terminal.

Transition Impact

The strong transition impact potential of this Project is derived from:

1. Demonstration effect

By supporting the first refinancing of a Public-Private Partnership (PPP) in Albania the Bank will set an example that can be further replicated in the region. For TIA to be able to refinance itself under such structure and on terms comparable with those available for PPP projects in mature PPP markets will send a clear and positive message to the markets about the state of development of the commercial, political and legal environment for PPPs in Albania and will therefore enhance the likelihood of a wider range of competitive bidders for future PPPs in the broader region. Some of the more conservative equity investors will be watching closely this first refinancing transaction - as a way to enhance equity returns - and will re-assess the attractiveness of Albania as an investment target.

2. Further strengthening of competition in the air transport industry in Albania

The Concessionaire’s prime concern so far has been and will continue to be the maximisation of airport revenues, by attracting new airlines, maximising aeronautical and non-aeronautical revenues and increasing the amount spent at the airport by arriving and departing passengers. TIA has already attracted several new high profile airlines (Lufthansa, British Airways) to fly to Tirana and will continue doing so in the future. This way TIA is/will be promoting more competition in the sector. This will correspond with the progressive liberalisation of the airline industry in Albania.

The Client

Tirana International Airport Sh.p.k. (TIA) is a limited liability company set up by Hochtief Airport GmbH, Deutsche Investitions und Entwicklungsgesellschaft (DEG) and the Albanian-American Enterprise Fund (AAEF).

TIA is the Concessionaire established following a competitive tender organised by the Government of Albania (“GoA”) for the development and operation of “Mother Teresa” International Airport on a 20-year concession basis from year 2005.

EBRD Finance

Up to EUR 22.6 million senior debt to be provided by EBRD to Tirana International Airport (TIA). An additional EUR 24.3 million senior debt financing will be provided as parallel loans by DEG, Alpha Bank and the American Bank of Albania as part of a total EUR 46.9 million senior debt facility.

EUR 12 million of senior debt from EBRD will be used for the refinancing of the original financing for Phase A development of TIA as part of a total amount of EUR 24.9 million signed in 2005. The other Lenders will provide the refinancing of the EUR 12.9 million remaining finance.

Up to maximum of EUR 10.6 million of senior debt from EBRD will be used for Phase B development of TIA as part of a total amount of up to EUR 22 million. The remaining amount of up to EUR 11.4 million will be provided by the other Lenders.


Project Cost

EUR 28.0 million (Phase B incl. refurbishment of Old Terminal)

EUR 24.9 million (refinancing of Phase A)

Environmental Impact

Screening category

The project has been screened as B/1 requiring an environmental analysis and review of the environmental status and performance of the existing facilities.

Due diligence undertaken, outcomes and residual risks

An Environmental Analysis of the planned development programme has been undertaken to identify the potential impacts of the development and the mitigation measures to mitigate those impact. The Environmental Analysis did not identify any significant environmental or social issues. TIA's compliance with the environmental and social requirements agreed for the first loan has been reviewed by EBRD. The review covered (i) current environmental, health and safety performance; and (ii) the implementation of Environmental Action Plan (EAP). Company has satisfactorily been implementing the environmental action plan developed for the first loan. In general, all operations of TIA are in compliance with the relevant national and EU environmental, social, and health and safety requirements. There is an integrated QEHS management system in place. Opportunities for EHS improvements have been included in the existing EAP.

Implementation requirements

  • The Company will ensure continuous improvement in their Environmental, Health and Safety Management System.
  • The Company will implement the EAP (as agreed with the Company).
  • The Company will conduct its business with due regard to National and EU environmental regulations and standards.
  • The Company will facilitate periodic monitoring visits by Bank staff or appointed representatives, when deemed necessary.


Technical Cooperation


Company Contact

Andrea Gebbeken
Chief Executive Officer
Tirana International Airport SHPK
Administration Building
Rinas, Tirana

Tel: +355 4381 600
Email: agebbeken@tirana-airport.com


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

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