DEG finances airport expansion in Serbia
Press Release from 2019-01-09 / DEG
Loan totalling EUR 22.4 million for VINCI Airports
Serbia is one of the growth drivers in the Western Balkans. To safeguard future development, it is important that the country’s infrastructure can keep pace with this growth. This includes Belgrade’s Nikola Tesla Airport, which, with around 5.3 million passengers, is already one of the busiest airports in the Western Balkans. DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is providing VINCI Airports Serbia D.O.O. with a long-term loan of EUR 22,4 million to upgrade and expand the airport. Other investors include the French development finance institution Proparco, the World Bank Group’s International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD).
Improved infrastructure offers economic boost
The expansion of Belgrade Airport, which was built in 1962, will include the addition of a second runway and a new passenger terminal. This will increase the airport’s maximum capacity to 12 million passengers a year. In early 2018, following an international tender process, French company VINCI Airports was awarded a 25-year contract to operate the airport serving the Serbian capital. VINCI Airports will also upgrade the existing terminals and taxiways. The company is one of the leading international airport operators and plans to make Belgrade Airport the company’s base in Central and Eastern Europe in future.
Upgrade meets international standards
“The new Belgrade airport will improve Serbia’s links to European markets and is strategically important for the region as a whole. An airport that meets international standards is also an important requirement for the country’s goal of accession to the EU. We are delighted to be supporting an experienced airport operator in this investment”, says Turan Caglayan, head of DEG’s Corporates/Project Finance/Funds Europe/Asia division.
DEG has been active in Serbia for more than 15 years and has financed entrepreneurial investments in agriculture, in the financial sector and in the field of renewable energy in the country. For example, it holds a 10% stake in the Cibuk I wind farm, which will have a capacity of 158 MW, making it the largest wind farm in the country.