AIA SA Offers €600m for 20-year Extension of Athens Airport Concession Agreement

Greek state privatization fund TAIPED on Tuesday accepted an improved financial offer of 600 million euros submitted by Athens International Airport SA (AIA) for the 20-year extension of the Athens airport concession agreement. The concession agreement has been in force since 31 July 1995.

AIA’s improved offer provides a total cost of 600 million euros, including the corresponding VAT. The net proceeds from the privatization program amount to 483.87 million euros.

According to TAIPED, the total benefit of the Greek State from the extension of the existing concession agreement will be multiple of the amount offered by AIA.

“It is estimated that the additional expected revenues from the payment of the annual remuneration, already provided for in the concession agreement, will amount to approximately 894 million euros for the total 20-year extension, whereas the estimated revenue from AIA’s income tax is estimated to reach 1.47 billion euros,” TAIPED said, adding that approximately 835 million euros is expected by the government, due to the expansion and the future payment of additional dividends.

Moreover, due to the estimated upward trend in passenger traffic and the generally expected increase in tourism figures in Greece, AIA is expected to be called upon to make a total investment of approximately 2.35 billion euros during the expansion period.

“The extension of AIA’s operation will have many other indirect benefits, namely the maintenance and possibly the increase in indirect work positions, as well as the increase in the overall economic activity associated with the operation of the company,” TAIPED noted.

The file on the concession agreement’s extension will be submitted to the Court of Auditors for the pre-contractual audit. The agreement will be signed following the Court of Auditors’ approval. The completion of the transaction is subject to approvals by the competent European authorities and the Greek Parliament.