Zagreb Airport concessionaire granted deferral of April concession fee payment

Due to a major decline in turnover, the ZAIC consortium, which operates Zagreb Airport, has been grandted by the Sea, Transport and Infrastructure Ministry a delay in payment of a part of the Concession fee, that is expected in April.

The possibility of delaying the payment of the concession fee is provided for by the Contract for the construction and operation of Zagreb Airport in cases of force majeur that have a significant impact on the concessionaire's cash  flow and ability to meet financial obligations.

Possible further deferrals will depend on future developments, the ministry said.

International Zagreb Airport d.d. has so far paid HRK 233.4 million of the concession fee. The concession fee is paid quarterly.

The Ministry noted that, considering the fact that traffic at Franjo Tudjman International Airport has been almost completely suspended, a significant annual decrease in revenue is expected but this will eventually also depend on results to be achieved by the end of the year, in light of the easing of COVID-19 restrictions and possible partial normalisation of international transport.

The ZAIC consortium, which holds a 30-year licence to operate Zagreb Airport, consists of BBI - Bouygues Bâtiment International, ADPM - Aéroports de Paris Management, IFC - International Finance Corporation, which is part of the World Bank, Marguerite - The 2020 European equity fond, TAV - TAV Airports, Turkey and the Croatian company Viadukt.

The concession fee for the 30-year period totals €87.2 million while the variable part of the concession fee, which is calculated as a certain percentage of gross revenue, exceeds the amount of the concession fee.