Payment of Concession Fees for Sofia Airport Postponed for Ten Years

Business | April 7, 2021, Wednesday // 15:57
Bulgaria: Payment of Concession Fees for Sofia Airport Postponed for Ten Years

The concessionaire of Sofia Airport will be able not to pay the state the annual fees for ten years.

This amendment to the concession contract of our largest airport approved the government on the proposal of the Minister of Transport Rossen Zheliazkov.

Zheliazkov pointed out that the postponement does not mean remission of future payments, and that this month the state will receive BGN 660 million in initial revenue from the concessionaire:

"We currently have a signed concession contract that is legally valid and binding. All the themes, these ideas, the statements, dabbling in politics with a moratorium on something that is already a fact, is legal nihilism and state voluntarism.

Whoever wants to, in the next government can proceed to terminate the contract and bear all the consequences of this, but will have to answer the following question - and this must be answered by statesmen - why does anyone want to damage the revenue part of the budget now and immediately with 660 million with VAT, which revenue is defined by the BNB as a risk if the initial concession fee is not received," the Transport Minister said.

The transport minister explained the amendment proposed by reduced passenger traffic because of the cornavirus restrictions on travel.

Minister Zheliazkov justified the change in contract with the severe economic situation because of the pandemic, but also announced that with today's decision it is possible to recover the annual payments earlier.

"The restoration of the balance of the concession boils down only to putting on hold the payment - it is not a remission nor a reduction, but a postponement, that is, we will at any time monitor the restoration of the economic balance", said Rossen Zheliazkov.

Yesterday BSP leader Korneliya Ninova announced at a briefing that at today's cabinet sitting it will be voted to de-schedule payments by the concessionaire of the airport for a period of 10 years, but he will receive fees and dividends for his activities.

 

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Tags: Bulgaria, Sofia Airport, concession fees, Transport Minister
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