Budapest Airport

Location:

Hungary

Project number:

47186

Business sector:

Transport

Notice type:

Private

Environmental category:

B

Status:

Cancelled

PSD disclosed:

07 Nov 2014

Project Description

The EBRD is considering providing its support to the financing restructuring of Budapest Airport concession, Hungary’s main airport.

The Bank’s financing would contribute towards the strengthening of the balance sheet structure of the company as part of a wider refinancing package, with a view to ensuring the airport’s financial sustainability in the medium to longer term.

EBRD financing will be also combined with measures focused on enhancing the airport’s energy efficiency standards.

Transition Impact

The transition impact of this project is anticipated from the:

(1) regional demonstration effect of promoting the sustainability of PPP structures. Successful balance sheet restructuring of Budapest airport will improve the sustainability of the concession arrangements in the medium to longer term, permitting further private concessions and efficient operations by commercial parties. The contribution to the restructuring is expected to maintain confidence in the operation and keep a key infrastructure run by the private sector, showing a regional example.

(2) demonstration effect associated with the airport’s energy efficiency operational standards enhancement.

The Client

Budapest Liszt Ferenc Airport, Hungary’s largest international airport.

EBRD Finance

Loan of up to EUR 65m, in parallel with the participation of commercial lenders.

Project Cost

EUR 1.3 billion

Environmental Impact

Categorised B. The Project does not involve any CapEx investments which could result in any significant environmental and social impacts.  Impacts associated with the day to day operation of the Airport are expected to be readily identified and addressed through standard mitigation measures.  Environmental and Social Due Diligence (ESDD) is currently in progress and is considering past and present Company performance against relevant Hungarian and EU standards and requirements as well as the EBRD Performance Requirements (PRs).  The ESDD is also reviewing the Company’s capacity to meet the PRs.  Specific issues subject to the ESDD include noise and emissions to air, fuel storage, water use and wastewater, waste management, labour and working conditions, occupational health and safety, stakeholder engagement and potential community impacts.  Operational safety at the airport including during aircraft take-off and landing, ground operations as well emergency preparedness and response is also being considered.  An Environmental and Social Action Plan will be developed to bring operations and the Company in line with the PRs. The PSD will be updated once the ESDD is complete.

Technical Cooperation

None.

Company Contact

Budapest Airport
BUD Nemzetközi Repülőtér
1675 Budapest Pf. 53.
Tel.: +36 (1) 296-9696
www.bud.hu

 

Business opportunities

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