JUSTIFICATION FOR THE WORKS CONCESSION FOR „CIVIL AIRPORT FOR PUBLIC USE PLOVDIV“- PUBLIC STATE PROPERTY 1 Justification for the works concession for “Civil Airport for Public Use Plovdiv” – public state property Content I. ADVISABILITY OF THE CONCESSION .................................................................................... 5 II. LEGISLATION OF THE CONCESSION ...................................................................................... 7 1. Main legal acts for Concession award ............................................................................................. 7 2. Legal and factual grounds for Concession award ............................................................................ 8 3. Issues, related to the National security and Defence of the country, Environment, Protected areas, Zones and Sites, and the Public order ..................................................................................................... 9 III. SUBJECT MATTER AND OBJECT OF THE CONCESSION, CONCESSION TERRITORY AND APPURTENANCES OF THE OBJECT OF CONCESSION ..................................................... 19 1. SUBJECT MATTER OF THE CONCESSION ........................................................................... 19 2. OBJECT OF THE CONCESSION ............................................................................................... 21 3. LAND PLOTS BUILDINGS AND FACILITIES LOCATED IN THE CONCESSIONAL TERRITORY, WHICH ARE NOT INCLUDED IN THE CONCESSION OBJECT .......................... 28 IV. MINIMUM REQUIREMENTS TO OFFERS .............................................................................. 31 1. MINIMUM REQUIREMENTS TO ECONOMIC OPERATORS ............................................... 31 2. MINIMUM REQUIREMENTS TO OFFERS ............................................................................. 35 V. ESTIMATED VALUE OF FINANCIAL AND ECONOMIC ELEMENTS OF THE CONCESSION ...................................................................................................................................... 37 1. ESTIMATED VALUE OF CONCESSION .................................................................................. 37 _Toc24031488 2. ECONOMIC BALANCE OF CONCESSION AND RISK ALLOCATION ................................... ....................................................................................................................................................... 39 2.1. Economic balance of the concession ............................................................................................. 39 2.2. Risk allocation of the concession .................................................................................................. 42 3. CONCESSIONAIRE REVENUE ................................................................................................ 44 4. PAYMENTS FROM THE GRANTOR ....................................................................................... 45 5. CONCESSION FEE ..................................................................................................................... 45 6. TERM OF CONCESSION ........................................................................................................... 46 VI. FORECAST LEGAL ARRANGEMENTS .................................................................................. 48 1. TYPE OF PROCEDURE .............................................................................................................. 48 2. LEGAL ARRANGEMENTS FOR BIDDERS IN THE PROCEDURE UPON CONCLUSION AND IMPLEMENTATION OF THE CONCESSION AGREEMENT .............................................. 48 3. CONDITIONS OF ENTRY INTO FORCE OF THE CONCESSION AGREEMENT, POSTPONING OR TERMINATION CONDITIONS ......................................................................... 51 4. USER RELATIONS, LIABILITY TO OTHER PERSONS IN THE PERFORMANCE OF CONSTRUCTION AND /OR SERVICES ........................................................................................... 53 2 Justification for the works concession for “Civil Airport for Public Use Plovdiv” – public state property 5. ACQUISITION AND TRANSFER OF OWNERSHIP OR RETURN OF THE CONCESSION OBJECT ................................................................................................................................................ 54 6. TERMS AND CONDITIONS FOR SETTLEMENT OF DISPUTES BETWEEN THE PARTIES …………………………………………………………………………………………………………………………………………………55 VII. OPPORTUNITY TO RECEIVE GRANT FINANCIAL SUPPORT FOR FINANCING CONCESSION COSTS THROUGH EUROPEAN STRUCTURAL AND INVESTMENT FUNDS 55 3 Justification for the works concession for “Civil Airport for Public Use Plovdiv” – public state property The present justification for the award of a works concession for “Civil Airport for Public Use Plovdiv” – public state property has been prepared as a result of the preparatory actions provided by the Minister of Transport, Information Technology and Communications in his capacity as a grantor, according to Art. 43b, para. 3 of the Civil Aviation Act (CAA) in connection with Art. 39, para. 1 of the Concessions Act (CA). In carrying out the preparatory actions, technical, financial, economic, environmental and legal analyzes have been prepared on the assignment of the grantor. According to Art. 58, para. 1 and 2 of the CA, the purpose of the justification for awarding a works concession is to justify the lawfulness and advisability of the concession, as well as of the decision for opening the procedure, and to define essential elements of the concession in preparation. Pursuant to Art. 58, para. 3 of the CA the justification is sent for coordination to the Ministry of Defense, the Ministry of Interior, the Ministry of Environment and Water, the Ministry of Culture and the State Agency for National Security. There is no reason to agree the justification of the concession with a managing authority. 4 Justification for the works concession for “Civil Airport for Public Use Plovdiv” – public state property I. ADVISABILITY OF THE CONCESSION According to the Strategy for the Development of the Transport System of the Republic of Bulgaria until 2020, the transport sector of Bulgaria is of utmost importance for enhancing the competitiveness of the national economy and for serving the population. Among the main goals are the achievement of sustainable and balanced development of the different modes of transport, efficient use of the available resources, strengthening the competitiveness of the Bulgarian transport system. By awarding a work concession for “Civil Airport for Public Use Plovdiv” – public state property, in accordance with the approved by the National Strategy for Development of Concessions in the Republic of Bulgaria until 2027 and the Action Plan for State Concessions (2019-2020) aims to achieve the following government priorities: 1. Development of quality and accessible transport infrastructure and services of public interest through partnership between MTITC and an economic operator; 2. Meeting the public needs for the development of transport infrastructure by including private investment in the construction and provision and management of transport services and related service activities at the best value for money; 3. Cost-effectiveness in managing public property in defense of the interests of citizens and society; 4. Ensuring the accessibility and quality of the services provided; 5. Effective maintenance, modernization and development of the transport infrastructure; 6. Integration of the Bulgarian transport system into the European one; 7. Limiting the negative impact of transport on the environment and human health; 8. Achieving a high level of safety and security of transport; 9. Developing airport infrastructure and maintaining international standards in terms of flight safety and aviation security; 10. Creating prerequisites for the further development of the infrastructure with a view to serving modern long-haul aircraft at long distances, including direct intercontinental flights. The main objective is to attract private investors in the process of development of the transport infrastructure sites to take the operational and construction risk in their construction and modernization, managing and maintaining them in order to achieve optimization of the provided transport services and provide stable financial resources, experts. knowledge and management skills for a relatively long period of time, in accordance with the subject of the concession and the conditions for its implementation. Specific objectives of the concession The main specific objectives of the works concession for “Civil Airport for Public Use Plovdiv” are through the mechanisms of the awarded works concession and to attract a financially stable private investor in the management of the airport in order to achieve: 1. Development and modernization of airport infrastructure and maintenance of international standards in terms of flight safety and aviation security; 2. Creating prerequisites for the further development of the infrastructure with a view to servicing modern long-haul aircraft at long distances, including direct intercontinental flights; 3. Increasing the efficiency and competitiveness of the airport; 4. Improving the quality of passenger and aircraft service; 5. Modernization of airport security and safety systems. 5 Justification for the works concession for “Civil Airport for Public Use Plovdiv” – public state property The concession award aims to transfer to the