Greek development agency Hellenic Republic Asset Development Fund (HRADF) has accepted the improved €600m offer submitted by the Athens International Airport (AIA) for a 20-year extension to the airport's concession agreement.
HRADF accepted the improved offer based on two independent evaluations and the positive opinion of a board of experts.
For the total extension period, it has been estimated that the additional expected revenues from the payment of the annual remuneration, already provided for in the concession agreement, will amount to about €894m.
The estimated revenue from the airport operator’s income tax is expected to reach €1.47bn.
As a result of the expansion and the future payment of additional dividends, approximately €835m is expected by the government.
As passenger traffic at Athens airport is estimated to rise, along with a surge in tourism, the AIA is expected to make a total investment of about €2.35bn during the expansion period.
The extension of AIA operations is expected to result in several benefits, including an increase in indirect work positions and a rise in overall economic activity.
AIA plans to submit the file on the extension to the Court of Auditors for a pre-contractual audit, after which the new agreement will be signed.
The completion of the transaction is subject to approvals from the European authorities and the Greek Parliament.