Greece Seeks Investors for 1 bln EUR Crete Airport

LEAFS FANATIC · September 1st, 2009, 10:16 PM

Greece seeks investors for 1 bln eur Crete airport
Tue Sep 1, 2009 9:28am EDT

ATHENS, Sept 1 (Reuters) - Greece said on Tuesday it is inviting would-be investors to bid for a concession to build and manage a 1 billion euro airport on the resort island of Crete.
The Greek government will contribute 220 million euros ($315.9 million) towards construction of the new facility at Kastelli, which will replace the existing airport at Heraklion, Crete's biggest city, Environment Minister George Souflias said in a statement.

The government will hold a 55 percent stake in the new airport's operating company. The winning bidder, which will provide the bulk of the funding, will have the remaining 45 percent and operate the airport for 35 years.

The new airport will have a capacity to handle between 5.5 and 10 million passengers per year and is projected to start operations in 2015, Souflias said.

Greece, one of Europe's biggest tourism destinations, is seeking private investment to help improve its infrastructure and attract more visitors. Crete is one of the country's biggest resort islands.

Concession contracts have financed infrastructure projects in Greece, as the government is faced with chronic budget shortfalls and a high public debt. Athens airport, the country's biggest, is managed under a concession held by German engineering firm Hochtief (HOTG.DE).

Investors must submit bids for Kastelli airport by Feb. 9, 2010. The government expects to pick the winning bid in the first half of next year, Souflias said. (Reporting by Harry Papachristou; editing by John Stonestreet)

© Thomson Reuters 2009 All rights reserved

http://www.reuters.com/article/rbssI...69812920090901

1821 · September 2nd, 2009, 07:43 AM

Interesting.
I assume by Kasteli, it means Kasteli to the south east of Heraklion and not Kasteli kolpos on the western side of Crete?
If so I wonder if the small airbase at Kasteli will be replaced with this new airport, or if it will be in another location nearby?

skyduster · September 3rd, 2009, 03:50 AM

Kasteli, the municipality near Heraklion.

This is great news. HER needs to move from its current location.

The current situation is reminiscent of Hellinikon Airport: an airport right on the coast, and too close to the city, with encroaching urban development.

September 1st, 2009, 10:16 PM	#1
LEAFS FANATIC Registered User Join Date: Dec 2004 Location: Toronto and Athens Posts: 3,154 Likes (Received): 76	Greece Seeks Investors for 1 bln EUR Crete Airport Greece seeks investors for 1 bln eur Crete airport Tue Sep 1, 2009 9:28am EDT ATHENS, Sept 1 (Reuters) - Greece said on Tuesday it is inviting would-be investors to bid for a concession to build and manage a 1 billion euro airport on the resort island of Crete. The Greek government will contribute 220 million euros ($315.9 million) towards construction of the new facility at Kastelli, which will replace the existing airport at Heraklion, Crete's biggest city, Environment Minister George Souflias said in a statement. The government will hold a 55 percent stake in the new airport's operating company. The winning bidder, which will provide the bulk of the funding, will have the remaining 45 percent and operate the airport for 35 years. *The new airport will have a capacity to handle between 5.5 and 10 million passengers per year and is projected to start operations in 2015, Souflias said*. Greece, one of Europe's biggest tourism destinations, is seeking private investment to help improve its infrastructure and attract more visitors. Crete is one of the country's biggest resort islands. Concession contracts have financed infrastructure projects in Greece, as the government is faced with chronic budget shortfalls and a high public debt. Athens airport, the country's biggest, is managed under a concession held by German engineering firm Hochtief (HOTG.DE). Investors must submit bids for Kastelli airport by Feb. 9, 2010. The government expects to pick the winning bid in the first half of next year, Souflias said. (Reporting by Harry Papachristou; editing by John Stonestreet) © Thomson Reuters 2009 All rights reserved http://www.reuters.com/article/rbssI...69812920090901

September 3rd, 2009, 03:50 AM	#3
skyduster Registered User Join Date: Jul 2007 Location: Chicago, Paris, Athens Posts: 832 Likes (Received): 11	Kasteli, the municipality near Heraklion. This is great news. HER needs to move from its current location. The current situation is reminiscent of Hellinikon Airport: an airport right on the coast, and too close to the city, with encroaching urban development. __________________ HELP PROMOTE MEDITERRANEAN GARDENING FOR MEDITERRANEAN CLIMATE REGIONS

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September 2nd, 2009, 07:43 AM	#2
1821 BANNED Join Date: Mar 2008 Posts: 2,233 Likes (Received): 0	Interesting. I assume by Kasteli, it means Kasteli to the south east of Heraklion and not Kasteli kolpos on the western side of Crete? If so I wonder if the small airbase at Kasteli will be replaced with this new airport, or if it will be in another location nearby?