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Serbia extends bidding deadline for Belgrade airport concession

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Serbia’s government said it has extended the deadline for submitting of non-binding bids for a 25-year concession on Belgrade Nikola Tesla international airport to March 10.

The deadline was postponed in order to allow all interested investors to prepare the needed documentation for bidding, the government said in the latest edition of the Official Gazette of the Republic of Serbia, issued on Wednesday.

The process of awarding the concession contract will be executed in two phases, with investors submitting non-binding bids in the first and binding proposals in the second. Initially, the government said investors will be able to apply for participation in the first phase within 15 days starting February 10.

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Eligible bidders must not hold more than 20% of the concessionaire of an airport which has served more than one million passengers at any point in time over a twelve-month period from January 1, 2016, and which is located within a 450 km radius from Belgrade, the government said in the public invitation published in the Official Gazette earlier this month.

Bidders shall have been the operator of an international airport with traffic of over five million passengers annually for at least two years over the past ten years and shall have equity in excess of 500 million euro ($529.6 million).

According to Serbian media reports, Vinci Airports, Fraport, Bouygues, two unnamed firms from the United Arab Emirates and three companies from China are interested in the deal.

Belgrade airport, operated by Aerodrom Nikola Tesla [BEL:AERO] company, serviced record 4.92 million passengers in 2016, up 3% year-on-year.

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The Serbian government owns 83.1% of Aerodrom Nikola Tesla [BEL:AERO], the operator of the airport, which booked a 22% year-on-year rise in net profit to 21.6 million euro in the first ten months of 2016.

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