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Investment Overview.Pdf Investment Highlights he Republic of Hungary is calling for the The Development could be of interest to investors by Tdevelopment of Taszár Airport, a former military virtue of the following favourable conditions: air base, whose attributes and location make it one of • Geographical location of the Development: the best development opportunities in the country. 175 km from Budapest and at the gateway to In the first stage of the project the objective is to the Balkan region, close to Adriatic ports and create an intercontinental cargo airport of European other Eastern and Central European countries, significance in order to stimulate the economic which are EU accession candidates; development of the Southern Transdanubian region, • Transport infrastructure at the location of the especially Somogy County and the city of Kaposvár. Development project: its position within 45-60 minutes of three Trans-European Network (TEN) According to the preliminary development concept, a transport corridors, direct connections to Hungary's complex logistical services and production platform major road network (with sections to be completed with cargo airport functions (hereinafter, between 2011 and 2015), and connection through "Development") is proposed on the present site of the a dedicated freight line to a main international Taszár Airport and the adjoining vacant land that can rail network line, make possible the development be incorporated into the development project. of a tri-modal logistics centre; The driving force behind the concept is to build upon • Airport infrastructure: a 2,500 metre runway, the possible synergies between the various potential in need of renovation but in structurally sound functions entailed in the project. Airport, logistical condition, which can be extended to 3,500 and production capacities complement each other and metres, rendering it suitable for intercontinental the services they provide can create a market in which freight aircraft; they contribute to each other's individual success. • Favourable natural geographical conditions, optimal orientation: the airport can be In consideration of the outstanding importance of this operational on average 359 days of the year, development, the Prime Minister of Hungary has i.e. it has a corrected usability factor (F ) appointed a Prime Ministerial Commissioner uc of 98.4 per cent; responsible for the Development in 2006. The • Favourable noise tolerance: results of Preliminary Development Concept was accepted in preliminary noise level calculations indicate March 2006, and in August 2006 a technical and that the airport is suitable for an annual cargo environmental feasibility study was completed in throughput of 650,000 tonnes without the connection with the Development. implementation of noise reduction measures; On the basis of the results of the Preliminary • Large area of land for development, possibility Development Concept and the Feasibility Study, the of expansion: the airport area consists of 530 capital expenditure of constructing the airport hectares, which is in exclusive state ownership component would be HUF 25-30 billion (approx. EUR and can be expanded by a further 371 hectares 90-110 million) - assuming a maximum air cargo of surrounding land; handling capacity of 650 thousand tonnes per year (a • Favourable investment environment at a theoretical maximum taking into account noise limits). national level: within the framework of an EU cohesion policy, Hungary will be entitled The Republic of Hungary - in order to achieve these to development funds of EUR 22.4 billion objectives - is seeking an investor (or investors) who: between 2007 and 2013, which is expected • is willing to participate as a strategic partner to significantly boost economic development; in the Development Project, which includes the • Favourable investment climate at a regional implementation of the intercontinental cargo level: the Southern Transdanubian region, airport and other components of the development including the Taszár area, has been earmarked concept, as a priority target for allocation of EU funds; • has experience of implementing large-scale economic development projects of similar dimension, • is willing to accept a leading role in arranging the financing of the Development. 1 • Low-cost, qualified labour force available in the A definite decision on the structure of the relationship immediate vicinity of the Development: some with the investor(s) and the local authorities involved in 300 former employees of Taszár Airport are the Development, will be made based on the results of available for re-employment, and the universities discussions with potential investors. Similarly, the final and institutions of vocational training in concept and components of the Development will be Kaposvár and Pécs (a regional centre located finalised after consideration of proposals from 60km from the Development Project site) can interested investors. provide a continuous supply of qualified labour; Therefore, the Hungarian state is posing the following • National development priority and support of questions to potentially interested parties: local authorities: the Development will contribute to achieving the objectives of the • Is there any interest for developing and/or state in the region and the fulfilment of local operating a complex economic development development interests. The Development is in project, which includes a civil cargo airport line with sectoral and regional development in Taszár? policies and concepts; • What is the optimal combination of functions • Possibility of significant public financial support in order to ensure acceptable returns for the towards infrastructural development: this could investor(s) while fulfilling the objectives of the include connection to the utilities network, as Hungarian state? well as to the network of major roads which is • What relationship structures between the currently under construction; Hungarian state and investors (e.g. PPP, • Possibility of significant public financial support real estate sales, rental, concessions) and what in the preparatory phase of the project: this forms of state involvement in the Development could include reclassification and standardisation (e.g. incentives for investment, utilities and road of the land targeted for development, and development) are potentially attractive from an providing the investor "single point of contact" investor's point of view? assistance; • Possibility of significant public financial support The answers to these questions and other proposals after realisation of the Development, in the deemed feasible will influence the decision making operational phase: considering the size of the process, contributing to finalisation of the Development and its effect on generating Development Concept and the future tendering employment, a significant state subsidy of process. employment support may become available; • Opportunity to enter the market: an opportunity to enter the dynamically developing Hungarian and international airfreight market at the present southern gateway to the EU. FOR FURTHER INFORMATION ON THE DEVELOPMENT, PLEASE CONTACT: Dr. István Kolber, MP, Member of the Development Policy Supervisory Body and Prime Ministerial Commissioner for Taszár Airport Development. Tel: +36 1 4413570 • Fax: +36 1 441 3572 • e-mail: [email protected] Mr. Sándor Zelles Managing Director, Treasury Property Directorate Tel: +36 1 3315746, +36 1 3317148 • Fax: +36 1 3121828 • e-mail: [email protected] 2 History aszár airport started serving regular air traffic in 1930. The basic infrastructure of the present airport was Tbuilt between 1949 and 1950. At the beginning of the 1980s, extensive modernisation work was completed and the present runway was constructed. From 1950, the airport was used for military purposes, and provided defence for the airspace of southwest Hungary. At the end of 1995, US peacekeeping forces took over the airport from the Hungarian air force. Thus, one of the country's largest airports became one of the most important bases for the US peacekeeping forces that participated in helping to resolve the conflicts in the Balkans. From 1996 the extended supplies base provided temporary accommodation to the troops taking part in the Bosnian peacekeeping mission. In 1999, fighter planes were brought to the airport to support the NATO bombing campaign against Serb targets. Between 1999 and spring of 2001, with the base providing logistics services, 5,000 aircraft landed, 55,000 tonnes of freight were handled, and more than 50,000 troops were stationed there. In 2001 the airbase was reorganised into a reserve base, and at the end of the Balkan crisis in 2004 the US military left after a nearly nine year stay in Hungary, with the USA having spent a total of more than USD 10 million on the modernisation of the airport and its facilities. After the US forces left, Taszár Airport was not reclaimed by the Hungarian Army, and it was closed down on 1 September 2005. The legal rights to administer the base are currently being transferred to the Treasury Property Directorate (KVI). 3 Preliminary Development Concept The central idea of the development concepts that The current site of Taszár Airport can be significantly have been drawn up prior to concrete negotiations expanded according to the needs of development, with investors is that a complex logistics service and providing an exceptional opportunity for the creation production centre based on freight transport
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