In early 2008, the St. Petersburg City Government together with the Pulkovo Airport Company initiated the bidding process for a 30 year PPP project to expand, operate and maintain the Pulkovo International Airport ("Pulkovo").
Pulkovo, located 16 km south of St. Petersburg, is Russia's fourth busiest airport in terms of passenger flow, servicing over 6 million people in 2007 and 66 airlines regularly. The project aims to address the airport's rising capacity constraints and cater to forecasted growths in passenger and cargo traffic expected in the next 30 years. The project involves the construction of a centralized passenger terminal which will concentrate all main operations of scheduled and charter passengers, both international and domestic; the reconstruction of certain other existing buildings and structures of the landside facilities; construction of new buildings and structures of the landside facilities (hotel, parking, access roads); and reconstruction of part of existing airside facilities (expansion of the airfield, new apron, runways and taxiways construction).
BUSINESS | CONSTRUCTION OBLIGATIONS | PRIVATE FUNDING | SERVICE DELIVERY | SOURCE OF REVENUE |
BUSINESS - Existing: The transaction entails the expansion of the existing Pulkovo Airport of St. Petersburg to address the airport's rising capacity constraints and cater to forecasted growths in passenger and cargo traffic expected in the next 30 years. The project company will essentially take over an existing business with a tested and existing (but growing) air traffic demand, as well as historic financial records and stream of revenues.
CONSTRUCTION OBLIGATIONS - Refurbish: The project entails the construction of a centralized passenger terminal and the reconstruction of certain other existing buildings and structures of the landside facilities. The project company assumes risks such the existing condition and latent defects of the assets.
PRIVATE FUNDING - Finance: Although it is unclear the financial plan of the project, it is likely that it will require a combination of both equity and debt from the project company, who is yet to be defined.
SERVICE DELIVERY - User: It is envisaged that under the proposed structure the project company will provide services directly to its customers from airside (airlines) and landside operations.
SOURCE OF REVENUE - Tariffs: The project company will obtain revenues directly from users / customers airside (airlines) and landside operations.