Corporate Communications

VTB Capital has won the open tender for the Pulkovo airport development project

25 June 2009

Northern Capital Gateway Ltd. Consortium consisting of VTB Capital, Fraport AG (the owner and operator of Frankfurt airport) and Copelouzos (investment and business group, Greece) has won the open tender for the right to conclude an agreement on the development, reconstruction and operation of Pulkovo airport, the fourth largest in Russia, based on Public Private Partnership (PPP), in the city of St. Petersburg in Russia. The PPP is concluded for 30 years with the Government of St. Petersburg.

The official announcement of the tender results took place in Smol’ny during the meeting of the Tender Committee chaired by Mrs Valentina Matvienko, the Governor of St. Petersburg. Andrei Kostin, VTB Bank President and Chairman of the Management Board, represented VTB Group at the ceremony of the official announcement of the tender results.

The tender bid submitted by the consortium led by VTB Capital has been recognised as the best based on a combination of technical, legal and financial criteria. The Northern Capital Gateway consortium will build and put into operation a new modern passenger terminal complying with to the highest international standards. The existing airport’s infrastructure will also be reconstructed. Providing the top class service to both passengers and airlines will be the key target for the consortium for the entire 30 years of the concession.

The construction of the new terminal and improvement of the adjacent infrastructure will significantly increase the airport’s capacity and will make it possible in a longer run to turn the airport into an international air-transport hub. This will be achieved while retaining the existing headcount at the airport and creating new jobs in both construction and commercial sectors.

The overall amount of investments required for the 1st stage of the project (the construction of the new terminal and upgrade of existing infrastructure) will amount to EUR 1.4 bln. EBRD and VEB have already expressed their strong interest in providing credit support to the project. VTB Group represented by VTB Capital as one of the investors and financial consultants of the consortium will take an active part in developing an optimal financing structure in order to secure the most beneficial financing terms and achieve the timely commencement of construction of the new terminal.

Fraport AG will act as the operator of Pulkovo airport and will be responsible for providing the top class service to passengers, attracting new airlines, developing new routes and realising the airport’s commercial potential. Fraport AG has the unique experience in development of regional airports worldwide (Antalya, Burgas/Varna, Delhi, Cairo, Lima etc) and realising their potential for growth. Fraport AG will make available its leading experts and consultants who will be in charge of the efficient airport’s development as an international hub. Copelouzos Group, in turn, will bring its experience of investments in European airports to the project.

Andrei Kostin, VTB President and Chairman of the Management Board, said:

“We consider the results of the tender as a strategic success of VTB Group and a key element in supporting development of the Russian infrastructure. In VTB Capital Infrastructure Capital team we have brought together top-tier professionals with great experience in implementing large-scale complex infrastructure projects worldwide.”

Yuri Soloviev, President and Global CEO of VTB Capital, added:

“We are sure that the Pulkovo project will convincingly prove the possibility of successful implementation of large infrastructure projects in Russia in the current market conditions. We hope that this project will serve as an example for other similar initiatives in different regions of the country. VTB Capital, the Investment Business of VTB Group, is willing to provide its experience and resources to assist in preparing, structuring and implementation of infrastructure projects.”


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