Pulkovo Airport Concession Finance

Location:

Russia

Project number:

39029

Business sector:

Transport

Notice type:

Private

Environmental category:

B

Approval date:

21 Apr 2010

Status:

Complete

PSD disclosed:

15 Feb 2011

Translated version of this PSD: Russian

Project Description

The Project Company will build, expand, finance and operate the Pulkovo airport facilities (with the exception of cargo terminal and business aviation) under the terms of a Public Private Partnership agreement signed with the City of St Petersburg and Pulkovo Airport Company on 30 October 2009 for a period of 30 years.

The proposed EBRD funding is intended to finance the construction of a new terminal as well as the refurbishment of the existing infrastructure of the airport facilities at St. Petersburg airport. It is expected that the major construction works will take place between 2010 and 2013. Fraport AG will support the Project Company as the Lead Operator and will make available its expertise as required by the Project Company by entering into an airport operator and technical support agreement.

Transition Impact

The project will support the first competitively and transparently procured airport concession in the Russian Federation, structured under the PPP Law of St Petersburg, which is expected to have a demonstration effect for other cities in Russia that may consider concessions for their airports. The concessionaire includes an airport specialist foreign company (Fraport), which could enhance the efficiency of the airport and improve the standards of service for passenger and airlines.

Additionally the project will set high standards in terms of building energy efficiency and energy management that go substantially beyond what is required under current legislation.

The Client

Northern Capital Gateway, a Project Company indirectly owned by VTB Capital, Fraport AG Frankfurt Airport Services Worldwide and the Copelouzos Group.

EBRD Finance

EUR 100 million A-Loan.

Project Cost

EUR 1.2 billion.

Environmental Impact

Categorisation and process
The Project is categorised as B/1 in accordance with EBRD’s Environmental Policy 2003.

Work on the scoping of the environmental and social due diligence started in December 2008 in close association with the City of St Petersburg and their advisers. Due diligence included:

1. An Environmental and Social Analysis of the proposed project, which identified the following issues: waste and run off water treatment, solid waste treatment, noise, sanitary protection zone. For all identified issues, the Project Company either has presented mitigations as part of its Environmental and Social Action Plan (ESAP), or will have to do so in further detail at mutually agreed deadlines as part of the implementation of the ESAP. Other issues of lesser significance were also identified and are addressed in the Environmental and Social Action Plan.

2. Development of a Stakeholder Engagement Plan, including public consultation meetings held in different areas of St Petersburg in mid January 2010.

3. Soil and groundwater investigations.

Main Environmental and Social Issues
Main environmental and social risks and issues associated with the Project are as follows:

  • Pulkovo airport started operations in the 1930s; as such it has significant potential for groundwater and soil contamination by hydrocarbons, solvents and other hazardous substances; this needs to be assessed as it may entail considerable liabilities to the Project Company and to the Bank
     
  • Workforce-related risks, with potential retrenchments associated with the Project Company workforce optimising efforts
     
  • Environmental issues typically associated with airports: noise, de-icing, greenhouse gases, air pollution
     
  • Permitting-related risks, particularly in respect of the Sanitary Protection Zone
     
  • Potential for local opposition, as the Project is based on a significant expansion of the airport with the traffic expected to increase two-fold over the next 10 years.

Public consultation
Public consultation took place in mid-January 2010 and was organised as follows:

1) 19/01 noon-4pm at North-west exhibition centre, Victory square, 2, St. Petersburg
2) 20/01 10am-2pm at culture house "Krasnoselskiy", pr. Lenina, 2, Krasnoe Selo
3) 20/01 3pm-6pm at "Voshod" cinema, Pogranichnika Garkavogo str, 22/1, St. Petersburg

The public consultation exercise demonstrated significant interest in the Project and its architectural and technical characteristics from residents of St Petersburg in general and neighbouring areas in particular. Main concerns are potential disruption to flights during construction, workforce evolution potentially associated with the Project, noise and air pollution (these latter being of specific concern to the residents of Krasnoselsky and Kirovsky districts, who request potential optimisation of approach routes to be investigated by the relevant authorities). The Project Company will explore how these issued could be considered and addressed.

Technical Cooperation

The Bank has arranged a review of the energy performance of the envisaged new terminal in relation to applicable international benchmarks. This audit has been funded by the Netherlands under the existing Energy Audit Framework for an amount of approximately EUR 54,000.

Company Contact

12 Federation Tower-West, 20th floor
Presnenskaya quay,
Moscow,
Russia

E-mail: info@newpulkovo.ru

 

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

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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