INFORMATION SHEET Measure summary N° 2000/BG/16/P/PT/002

Measure title Airport Reconstruction, Development and Extension: Lot B1 – New Terminal and Related Infrastructure

Authority responsible for implementation

Name: Ministry of Transport and Communications Address: 9, V. Levski Str., 1600 Sofia, E-mail: [email protected]

Location

Beneficiary country: Bulgaria Region: Central region, Sofia

Project description

The project concerns the construction of a new passenger terminal and related infrastructure for the airport of Sofia, Bulgaria. It forms part of a wider development comprising the extension and realignment of the to cater for larger aircraft and to reduce noise disturbance to the residents of Sofia. The airport is the only one in Bulgaria with year-round scheduled international flights.

The existing facilities at Sofia airport date from the 1940s and provide a very poor level of service to passengers and operators. Inadequate space leads to congestion at peak periods and inefficient operating conditions. The new terminal will be built to modern international standards with a design throughput of 2.6 million passengers.

Sofia Airport handled 1,143,841 international passengers and 92,769 domestic passengers in 1999.

The project will allow the airport to cater for the growth in air traffic expected once the reform and restructuring of the Bulgarian economy takes full effect. More specifically, the project’s main objectives are: • to provide airport facilities that correspond with the recommendations of the International Civil Aviation Organization (ICAO); • to ensure capacity is available to handle 2.0 million passengers by 2010 and 2.6 million passengers by 2018; • to help Bulgaria meet its international obligations as regards aviation safety, security, competition, and customs and border controls. • to help Bulgaria fulfil the objectives of the Accession Partnership and National programme for the Adoption of the Acquis (NPAA); • to promote air transport links between Bulgaria and the EU and other candidate countries.

1 The works proposed comprise the following main components: New passenger terminal (56,500 m²); new aircraft parking aprons (50,000 m²); new taxiways and taxi-lanes (13,000 m²); access road (1500-2000 m); car parking (28,000 m²). The terminal building has a modular structure allowing for future expansion if required.

Economic and social cost-benefit analysis

The economic benefits of this project derive from the anticipated improvements in the efficiency, safety and comfort of airport operations at Sofia. These are expected to have a number of favourable medium-term and longer-term impacts on the economic development of Sofia and of the Bulgarian economy as a whole.

The economic rate of return on the project financed by ISPA (new terminal and related infrastructure) has been estimated at 8.4 %, based on prudent traffic growth scenarios.

In addition, there are a number of economic benefits foreseen from the project that are difficult to quantify: direct and indirect employment generated during construction and operation; development of tourism; improvement in the efficiency of airline operations; additional scope for commercial activities; improvements in security, safety and border controls; and reduced noise for residents from realignment of the runway.

Environmental impact

The project falls within the scope of Annex I of Directive N°85/337/EEC on the environmental impact of infrastructure projects, as amended by Directive N° 97/11/EEC. An Environmental Impact Assessment (EIA) was undertaken of the Master Plan in 1996 and was the subject of a review by public enquiry in August 1996. The detailed design must also be evaluated for environmental impact. This EIA will be attached to the detailed design for the project and will be examined by the Bulgarian Ministry of Environment and Waters and then offered for public discussion before the building permit is issued.

On the basis of the EIA, a number of recommendations have been made by the Ministry of Environment and Waters to mitigate possible adverse environmental effects of the project. These have been fully incorporated into the airport design. Environmental management and monitoring of the project will also receive particular attention.

Cost and assistance

million Total eligible National EIB loan ISPA grant Grant cost authorities rate % 135.135 25.135 60.000 50.000 37

The above figures relate to the construction of the new terminal and related infrastructure. The total development of Sofia airport, including the construction of a new runway, is expected to cost approximately Euro 216.0 million.

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