Kosovo’s Prime Minister Hashim Thaci stated the government will continue to pursue more public-private partnerships in a bid to improve the country’s infrastructure, after announcing a Turkish-French consortium will operate Pristina International Airport, the country’s major international gateway (Balkan Insight, 12-Apr-2011). Limak-Aeroport de Lyon will operate Pristina International under a 20 year PPP scheme, which will see the government receive 40% of the airport’s gross profits. “Being in a position where we lack financial resources to meet all needs, the government treats PPPs as an opportunity to improve the infrastructure of Kosovo without placing an excessive burden on public finances,” the prime minister said.
More PPPs to come in Kosovo
You may also be interested in the following articles...
Private investment in airport infrastructure is popular again: the growing importance of the PPP
Privatisation of airports, or at the very least their corporatisation into independent business units that behave along business lines, has again become fashionable. This follows a dip in transactions and prices during the period of the global financial downturn from 2008-2012. Money is now easier to obtain and air transport infrastructure is popular with investors as it typically has a long term cycle attached to it, usually quite the opposite of the airlines that use it.
For now at least traffic figures are rising and airport EBITDAs with them, along with the earnings multiples when they are sold. What is more, the activity is across the board - in PPPs, BOTs, trade sales, even IPOs.
Meanwhile, for the airlines, this is the first time for decades that they are not caught up in a fight for survival. And on the other side, many countries are facing low levels of economic growth where infrastructure funding, while vital, is not possible out of the public purse.