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Germany,Greece : Fraport-Copelouzos Consortium signs contract with HRADF for 40-year concessions to manage 14 Greek Airports.

On Monday, Fraport AG Frankfurt Airport Services Worldwide and its Greek partner Copelouzos Group signed contracts with the Hellenic Republic Asset Development Fund or HRADF for the 40-year concessions for operations, management, development and maintenance of 14 regional airports in Greece.

Completion of the transaction is expected during the autumn of 2016, during which the Fraport consortium will make full payment of the 1.234 billion euros upfront concession fee in tandem with the takeover of operations at the 14 airports.

Under the international tender process for the regional airport concessions launched in 2013, HRADF in November 2014 selected the Fraport consortium as preferred bidder.

The mainland airports are Aktio, Kavala and Thessaloniki, Greece's second largest city. The other eleven airports are located on the Greek islands of Corfu/Kerkyra, Crete/Chania, Kefalonia, Kos, Mitilini, Mykonos, Rhodes, Samos, Santorini, Skiathos and Zakynthos.

According to Fraport, it would enjoy a clear majority share in the concession companies, while Copelouzos will own the remaining stake. However, actual ownership of the airports will still be retained by the Greek government throughout the concession term.

In addition to the upfront concession payment, an annual fixed concession fee of 22.9 million euros will be paid initially. Until 2020, the Fraport-Copelouzos consortium is also required to invest a total of 330 million euros in airport infrastructure, to be followed by maintenance and traffic-driven capacity investments during subsequent years of the project.

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Publication:Mena Report
Geographic Code:4EUGR
Date:Dec 15, 2015
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