Reconstruction and modernization of the airfield is carrying out from the federal budget resources within the federal special purpose program “Development of the transport system of Russia (2010-2020 years)”, but the terminals of the airport shall be reconstructed from the extra budgetary resources.
One of the key conditions for investors attraction to such projects is the investors’ control over the airport operator. But the Samara region had no relevance neither to stocks of the airport operator (PJSC “Kurumoch International Airport”) nor to the airport’s property. Airport stockholders (many of whom are former employees of an air entity) had no possibilities to make investments.
The only possible form of attracting private investments to the project was direct participation of the Corporation as a party of investment transaction. Negotiations were held with the largest Russian financial investors and international airport operators in order to present the investment program and estimate investors’ expectations.
At the same time, together with international consultants who have an experience of implementation such projects (such companies as NACO, Ernst & Young (EY), Herbert Smith (Herbert Smith Freehills)), the Corporation has developed the master plan for the airport for the period till 2035, the concept of project implementation, rules for selection of investors and a number of other documents which are necessary for investors.
As a part of the master plan’s development, several options for the new airport location were considered. Together with the Government of the Samara region the Samara Region Development Corporation has analyzed the options in the context of potential for the airport development. Instead of the extension of the old airport building it was decided to build the new modern terminal.
Selection of investors
Announcement about the selection of investors has generated extraordinary interest among specialized strategic investors which indicates the high quality of project preparation and development. 6 applications to participate in the selection were filled. Among them were the applications from such companies as “Bazoviy element”, “Novaport”, infrastructure fund MacquarieRenaissance, VTB Capital, Group of companies “Renova”; the largest Russian and foreign financial institutions have paid their attention to the project.
In January, 2012 the Corporation entered into the Investment agreement with the winner of the selection (CJSC “Kurumoch-Invest). This agreement enshrined in details investor’s obligations in terms of the volume, features and time period of implementation of the investment program for Kurumoch international airport.
Assistance provided to the investor
One of the most substantial advantages of cooperation with the Corporation during the implementation of the projects is the support given at the highest regional level. Chairman of the board of the Corporation is the Governor of the Samara region, and the members of the board are key ministers of the regional government and the representative of Vnesheconombank.
An experience, competences and the partnership relations with resource supplying organizations (Gazprom, FSK, MRSK, etc.), specialized regional ministries (Ministry of transportation and highways of the Samara region, Ministry of energy and housing & utilities of the Samara region) and Chief magistrates allow to provid investment sites with all necessary infrastructure within the shortest period possible.
The Corporation provided an assistance to the Investor in solving land issues crucial for finishing the project, in conducting negotiations with OJSC “Russian Railways” and the Government of the Samara region relating to the organization of railway communication with the airport and gave an organizational support in the meetings on essential issues in federal and regional ministries, administration of plenipotentiary envoy to Privolzhsky Federal district and companies responsible for preparation for FIFA World Cup 2018.
Control over the implementation of the project
In accordance with the Investment agreement the Corporation exercised control over the implementation of the program until the construction objects commissioning. The validity of the Investment agreement in so far as it refers to the control over the compliance by Investor with obligations related to the due airport operation continues even after the commissioning of the construction objects of the first stage. In particular, the Corporation and the Investor regularly test the passengers’ service system for its compliance with the targets and benchmarks set in the Investment agreement.
Implementation of the first stage of the investment project allowed to increase the air-terminal complex capacity, to bring technological infrastructure of the airport in compliance with effective Russian and international regulations and technical capabilities of the airfield, as well as gave the strong impulse to the development of passenger and cargo transportation. This became an important step in the development of the regional transportation system which encourages incorporation of new enterprises and work places and, finally, acceleration of social and economic development of the Samara region.
Within the first stage of the project, the amount of investments in construction and re-construction of the airport exceeded 6.8 billion rubles. Funding of the project totally from private resources has allowed to reduce the amount of budgetary funds and other resources allocated to the development and operation of the infrastructure object and to redirect these funds to the other socially important aims of the region.
Construction and commissioning of the new air-terminal complex of the international airport Kurumoch is the first completed project as part of preparation for FIFA World Cup 2018.
Upon consultation with the Corporation in 2013, the Investor made a decision on inexpediency of reconstruction of the part of the existing cargo terminal. Existing buildings were demolished and absolutely new modern cargo terminal with inbuilt administration and amenity building, adjoining car park and loading and unloading area was constructed. Area of cargo terminal is 5.1 thousand sq.m.
Successful location in close vicinity to the federal highway M5 (part of the international route AH6) allows to serve the needs in cargo transportation not only of the Samara region, but also of neighboring regions.